“The increase in the minimum wage gives a very good signal to the economy”

“THE raising the minimum wage gives a very positive signal to the economy and society. When one of the main problems is a problem of demand, this signal gives confidence to the workers and is an important signal ”, explains Caldeira Cabral in an interview with Agência Lusa.

The economist, who was the Prime Minister of Economy in the first government of António Costa, recalls that the discussion about raising the minimum wage had already arisen when he was part of the Government and despite the fact that economic conditions exactly they have no doubt that the salary should increase.

THE Current The moment “is different, but perhaps not so different from the moment we were in late 2015 and early 2016 when there were also the same arguments” for not raising the minimum wage.

Even so, Caldeira Cabral recognizes that in 2021 the increase in the minimum wage should be more moderate than in previous years due to the Current state of the economy.

“I think this would be a year in which the increase in the minimum wage, due to economic conditions, should be more moderate than in previous years,” defends the economist, adding that the increase should be related to the evolution of the economy.

“We must design increases in the minimum wage that have to do with the evolution of the economy. That it should be higher if there is a faster economic recovery, but that, eventually, it should be lower if the economic recovery is slower ”.

Caldeira Cabral recognizes that for some companies the minimum wage “influences their competitiveness and cost effectiveness“, but also remember that the Current crisis affected companies very differently.

“The crisis affected very different companies in a very different way and therefore it is much more important to have strong support “on the one hand and on the other”, we must look at the Recovery Program and align our priorities with what are European Priorities “.

And he explains what can be done to support companies: “we can use funds from sustainability to finance our companies to make investments, perhaps with a large part of the non-reimbursable fund, that reduce their bill energy in the coming years, “for example.

This type of investment, continues the economist, can allow the reduction of energy costs for companies and, thus, become–the “more competitive” and thus allow them to support “higher minimum wages,” he concludes.

No end of September the government began to listen to the social partners about the increase in the national minimum wage in 2021, but did not present a proposal despite maintaining the objective of or to update Since Current EUR 635 to EUR 750 at the end of the legislature.

Between 2011 and 2014 the minimum wage remained frozen at 485 euros, having subsequently increased to 505 euros in 2015, 530 euros in 2016, 557 euros in 2017, 580 euros in 2018, 600 euros in 2019 and 635 euros in 2020.

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