The 122-page report by the OECD states that the average disposable income of the richest ten percent of income earners in the OECD in comparison to the poorest ten percent has climbed from being 7 times higher 25 years ago to a current ratio of 9.5 times more.
It also found that the richest one percent continues to climb.
These figures were released as Finance Minister Mário Centeno explained details behind the state budget for 2016, which has been criticised by some observers because of unexpected tax hikes being implemented to compensate tax relief in other areas.
The Minister had this week also told newspaper Diário de Notícias in an interview that workers earning 2,000 euros or more a month are “privileged”.
According to data published on Thursday, obtained from the Labour and Welfare Ministry, the overwhelming majority of workers have nothing to fear should the Socialist government decide to take away from the “privileges” of those on €2,000 a month.
Five out of six taxpayers, or 83.4 percent, currently earn below €1,500 gross income a month, while the national average stands at €1,093 before taxes. These wages include additional benefits and overtime.
The largest percentage of workers earn between €600 and €749.99 a month, with half of all employees currently being paid €785 or less at the end of the month.
Among those who earn above the national average, one in ten have a wage packet containing between €1,500 and €2,490; 3.9 percent earn between €2,500 and €3,749, and just over one percent boast a salary of €3,750 to €4,999. A total of 0.9 percent of workers earn more than €5,000.
Following on these figures, where most Portuguese workers earn under €785 a month, and where the Government considers those on €2,000 a month to be privileged, the OECD has this week placed the country’s workers as being in one of the worst places to exercise a profession.
While the average worker in Western Europe could look forward to a mean wage in excess of €2,000, the OECD also found that the gap between rich and poor was also smaller in these “higher-earning” states.
The best countries to work in are also the ones with a lower discrepancy between rich and poor, with Iceland, Switzerland and Norway topping the list.
Greece, Spain, Turkey and Portugal, in that order, are at the opposite end of the scale, with job insecurity, lack of long-term careers and low wages, the major causes of poor employment satisfaction.
According to the OECD report, “There is still a striking difference between the richest and poorest in Portugal. The 20 percent most favoured earn almost six times more than the bottom 20 percent.”
Overall, Portuguese in the top one percent of earners have seen their share of the total income paid to workers rise from four percent in 1981 to ten percent three decades later.