Portugal's minimum wage receives a welcome boost

Portugal has followed the lead of several other European Union member states, including its neighbour Spain, in taking a deliberate decision to improve the position of its lowest-paid workers through above-inflation increases in its national minimum wage.

In the past, Portugal's minimum wage has usually risen in line with expected price rises. But this month's increase of 4.4% is well above the current inflation forecast of 2.1%.

The increase was agreed in the country's tripartite committee for "social concertation" last month, with the socialist minister of labour, JosŽ Ant—nio Vieira da Silva, backing a substantial real increase.

The agreement also has set a goal for the minimum wage to increase from the 2006 figure of Û385.90 a month (paid 14 times a year) to Û500 a month by 2011 - a 30% increase over five years.

Meanwhile, Spain's minimum wage - which the socialist government has promised to raise to Û600 during its period of office - rose by 5.5% to Û570.60 this month. And the minimum wage in Latvia has just been increased by 33% to 120 lats (about Û172).