Economists heard by Lusa have warned that bringing the national minimum wage closer to the average wage in this country (of comparatively low wages) has risks. It could end up increasing the number of workers receiving the minimum wage meaning “progression becoming much more limited.” The government only last week revealed its plans for the minimum wage (still requiring ratification by parliament). Experts stress that if the minimum wage rises at a higher rate than the average wage, the difference between the two will necessarily narrow, at a time of low economic growth. It is something already referred to by employers who want ‘compensation measures’ devised for any increases in the pipeline.
Economists warn that increasing minimum wage has its risks
