New salary minimum for foreign workers takes effect

IMPACT – MEDIUM

What is the change? Portugal’s monthly minimum wage for foreign workers has increased from €557 to €580 (about US$700).

What does the change mean? The new salary minimum will apply to all applications, including renewal applications, submitted on or after Jan. 1. It also applies to applications that were pending as of Jan. 1.

• Implementation time frame: Jan. 1.
• Visas/permits affected: All work permits and visas.
• Who is affected: Portuguese companies employing foreign workers, foreign nationals working or residing in Portugal.
• Business impact: Businesses may see an increase in labor costs because of the new wage minimum.

Background: Portugal’s minimum salary requirement for foreign workers is adjusted annually. Carmo Hatton, managing partner of ERES Relocation in Portugal, stated that as of Jan. 1 employee salaries must be at least €580 per month, not counting benefits.

BAL Analysis: The 2018 monthly minimum wage of €580 represents a 4-percent increase over last year’s level. Employers should take the new salary minimum into account when budgeting for 2018.

This alert has been provided by the BAL Global Practice group and our network provider located in Portugal. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.