European salaries do not arise from old laws.
The ambition to raise Portuguese salaries to match those in more developed European economies faces significant challenges. While there is political consensus on the need for better pay to retain talent and reduce emigration, the underlying economic conditions necessary for sustainable salary increases are often overlooked. Portugal's productivity remains below the EU average, hampered by a fragmented business landscape and high tax burdens that limit investment and salary growth. The average gross monthly salary in Portugal is significantly lower than in Spain and Germany, reflecting structural economic weaknesses. Young people face high unemployment despite their qualifications, often seeking opportunities abroad. Addressing this issue requires recognizing that salaries are a consequence of productive capacity, driven by investment and innovation. A balanced approach is needed to protect workers while fostering a flexible labor market that encourages growth and competitiveness…