Inflation | Salary
Inflation | Salary - The Portuguese are already feeling the impact of inflation in their wallets, with the prices of essential goods, energy products and services skyrocketing in this second half of the year, a scenario that may yet worsen. By 2023, private sector workers are expected to see inflation reflected in their wages.
According to the analysis made by 'Dinheiro Vivo' to the study "Total Compensation 2022" developed by Merce, a private sector worker with an average monthly gross base salary of 980 euros, may lose 44 euros per month in 2023, due to the expected increases of 2.8% in wages, below inflation, which this year will be 7.4%.
As for public employees, they will lose between 50 and 284 euros per month, according to the accounts of 'Dinheiro Vivo'.
Wage Increases for 2023
A study by consultancy firm Mercer, a subsidiary of Marsh & McLennan, released today, reveals that "the average forecast for salary increases for 2023 is around 2.8%, which translates into a slight increase of 0.5% compared to the forecast for 2021 to 2022 (2.3%). This is, even so, well below the inflation rate of 7.4% for this year.
An average monthly gross basic pay - without discounts, subsidies, bonuses or other benefits - which, in the private sector, reached 980 euros in June, according to the latest data from the National Statistics Institute (INE). Thus, if a 7.4% increase, in line with inflation, were applied to a 980-euro salary. Then the worker would receive 1052 euros a month, that is, 72.50 euros more. With an average increase of 2.8%, the salary will increase by only 27.40 euros to 1007 euros, that is, a difference of 44 euros. This loss adds to another already recorded in June, of 4.7%, according to INE, since inflation in the second quarter was 8% and the year-on-year growth in wages was only 3.3%.
Hiring
In terms of hiring, Mercer's "Total Compensation 2022" survey, which analyzed 160,076 jobs in 527 companies established in the Portuguese market, "shows a scenario where 43% of the companies assume to increase the number of employees this year, but only 31% assume, for now, to maintain this growth for 2023. More than half (53%) admit difficulties in retaining professionals, particularly in the areas of Engineering, Information Technology and Sales and Marketing. "The macroeconomic situation does not seem to offer confidence to organizations to plan and assume medium-term growth," concludes Marta Dias, Rewards Leader at Mercer Portugal.
