This increase implies not only an increase in companies' costs with salaries but also in the contributions that employers have to pay to Social Security.

According to ECO's calculations, companies will have to spend an additional 866 euros per year per worker with the new minimum wage.

“We are interested in people feeling that it is worth working more and better. To this end, we have a commitment to increase the national minimum wage [more] than was foreseen in the previous agreement. And the difference is not insignificant”, the Prime Minister pointed out, at the signing of the new tripartite agreement on wage appreciation and economic growth.

In the agreement reached by the previous Government in the Social Concertation, it was foreseen that the guaranteed minimum wage would reach 855 euros in 2025. However, Luís Montenegro's Executive understood that there were conditions to go further and set, within the scope of the new agreement, an increase to 870 euros, that is, 15 euros more than the projected increase.

Considering only wage costs, companies will therefore have to spend 50 euros more each month than they do today for each worker who receives the minimum wage. That is 700 euros more per worker at that wage level at the end of a year (considering 14 months).

However, the increase in the national minimum wage does not only imply an increase in these costs. It also increases the amount that employers have to pay to Social Security, in the form of the Single Social Tax (TSU), which corresponds to 23.75% of wages.

During 2024, in addition to the 820 euros salary, employers spent 194.75 euros per month for each employee earning the minimum wage, in Social Security contributions. Next year, they will pay 206.6 euros per month to Social Security, a difference of 11.9 euros.

After one year (14 months), the cost of companies with social contributions will have increased by 166.25 euros compared to the amount recorded throughout this year.

All things considered, in 2025, workers will receive a minimum wage of 870 euros instead of 820 euros, but for the company, the cost will increase from the current 1,014.75 euros (salary and TSU) to 1,076.6 euros (salary and TSU), the equivalent of an increase of 61.9 euros in company expenses per month.

After one year, employers will spend an additional 866.25 euros per month for each worker on the minimum wage.

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