Developments in average real wages in the private sector showed different dynamics between 2006 and 2020. The average real wage showed an upward profile between 2006 and 2009 and a significant drop between 2010 and 2012. After 2013, wages picked up again, particularly between 2018 and 2020. In the period 2006-2020, the average real wage in the private sector increased at an average annual growth of 1.0%.

Real wage growth was heterogeneous across sociodemographic groups. Women's wages grew by an average of 1.4% per year, more than men's (0.8%), in a context of a strong increase in schooling levels among the female population. The higher wage growth for youngsters and for workers with basic education levels reflects the larger prevalence of the national minimum wage in these groups. Overall, higher wage groups experienced lower wage growth. Besides the effect of the national minimum wage, these wage dynamics reflect the growth in the supply of workers with higher education attainment. 

For more details see the Special Issue “Developments in the national minimum wage over the period 2006-2020”, published in the Economic Bulletin of Banco de Portugal, March 2023.

Prepared by Fernando Martins, Domingos Seward and Marta Silva. The analyses, opinions and findings expressed above represent the views of the authors and not necessarily those of Banco de Portugal or the Eurosystem.

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