Minimum wage and collective bargaining dynamics in Portugal: wage compression and limited spillovers in low-pay sectors

Authors

  • João Monteiro Universitat Autònoma de Barcelona and QUIT, Barcelona, Spain
  • Rui Branco NOVA University Lisbon and IPRI-NOVA, Lisbon, Portugal

DOI:

https://doi.org/10.7458/SPP202611042174

Keywords:

low pay, statutory minimum wage, collective bargaining, pay equity, bitte and spillover effects

Abstract

The article examines how the steady increases in the statutory minimum wage (SMW) following the end of the Troika adjustment programme in 2014 have impacted the wage distribution and collective bargaining dynamics in low-pay economic sectors in Portugal. It aims at contributing to the literature on the SMW pay equity effects by specifying the mechanisms through which SMW rises shape collective bargaining, wage compression and wage spillovers. Using a mixed-methods research design that combines statistical data from Quadros de Pessoal with semi-structured interviews with social actors and government officials, it shows that wage compression and spillovers are contingent on the institutional and structural features of low-pay sectors, such as exposure to price competitiveness or reliance on the state along a neo-corporatist logic. Moreover, the evidence suggests that spillovers are curtailed when SMW increases are not accompanied by the reinforcement of other labour market institutions.

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Published

2026-03-03

Issue

Articles in continuous publication

Section

Articles

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Copyright (c) 2026 João Monteiro, Rui Branco

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