The authorization establishes that the salary increase per employee should be 3%, with the percentage taking into account the remuneration components.
The government has authorized public sector companies to increase their overall wage bill by up to 5%, with the reference per employee being 3%, according to an order sent to the companies, to which Lusa has had access.
“Public companies in the State Business Sector may increase their overall wage bill by up to 5%, on an annualized basis, compared to 2023,” reads the order signed by Finance Minister Fernando Medina on Saturday.
The document establishes that the salary increase per employee must be based on 3%, with the percentage taking into account the remuneration components, including salary updates, progressions and promotions, without prejudice to compliance with the increase in the national minimum wage to 820 euros (+7.9% compared to 2023) as of January.
In this way, there can be increases of more than 3%, particularly in the case of workers on lower incomes, “and in no case can the increase in the overall wage bill exceed the limit” of 5%.
The Ministry of Finance also clarified that the application of the increase “must be defined, in each company or business group, through collective bargaining, when it exists, without prejudice to situations in which the IRCT [instruments of collective bargaining] or other legal instrument in force already ensure this implementation”, in other words, it is not automatic.
“SEE [State Enterprise Sector] companies must ensure their operational efficiency, economic and budgetary sustainability and respective financial ratios, guaranteeing a continuous improvement of the business and/or the provision of a quality public service,” the government stressed.
As in 2023, the government has thus instructed that the reference increase provided for in the Reinforcement of the Medium-Term Agreement to Improve Incomes, Wages and Competitiveness (Reinforcement of the Agreement), signed on October 7 with the social partners, be applied to public companies.