Income distribution

The government will reconsider the minimum wage level in July, Labor and Social Security Minister Vedat Bilgin has said.

He noted that inflation has started to decline but prices continue to increase.

The shortages of workers, particularly skilled ones, defining the current economic climate have improved their bargaining position vis-a-vis employers. 

According to Randstad's HR trends survey of business executives for 2023, 66% believe job seekers have unrealistic salary expectations. Indeed, this figure has increased by 17 percentage points compared to 2022.

The measures introduced by the government to support incomes were significant, however, they could make up for the high cost incurred by employers due to social security contributions.

The new minimum wage of €780 a month has come into force as of April 1, after an increase of 9.4% on the previous level.

Accordingly, the minimum daily wage has also gone up, to €34.84, an increase of €5.80 on its February 2019 rate.

The National Assembly has passed a law designed to reduce the impact of the annual increase in the minimum wage on households' creditworthiness after the latest increase rendered much of the population ineligible for a mortgage.

With the new increase in the minimum wage to 780 euros gross and the drop in unemployment, a view across private sector payrolls in 2023 would show that about half of the country's workers will be paid gross earnings of €700-1,000 - i.e. up to €820 euros net.

Thousands of protesters filled downtown Lisbon on March 18 to demand higher wages and pensions, as well as government intervention to cap soaring food prices they say are strangling already tight budgets.

Finally, the parliament decided that the minimum wage should be 50% of the national average.

Walmart announced on Jan. 24 it will again raise pay for hourly staff, an indication of persistent tightness in the labor market for front-line employees despite layoffs in the tech sector.

The retail giant, the biggest private employer in the United States, is boosting the pay range at U.S. stores to between $14 and $19 an hour from the prior $12 to $18 an hour.

Slovenian banks are sounding the alarm and urging the central bank to ease lending conditions after a significant increase in the minimum wage and new capital requirements have rendered much of the population ineligible for a mortgage.