What is the current wage gap between men and women in Portugal?

What is the current status of wage inequality in Portugal?

The latest data, available in the 2023 edition of the Wages Differences Barometer between Women and Men from the Office of Strategy and Planning of the Ministry of Labor, Solidarity and Social Security, show that women earn, on average, 12.7% less per hour than men, which represents a wage gap equivalent to about one and a half months of income per year.

Despite advances in legislation and initiatives to promote gender equality, this is still a problem that persists and requires concrete measures for resolution. What measures have been implemented to reduce this inequality in the country?

Current measures to reduce wage inequality in Portugal.

To address this disparity, Portugal has been strengthening legislation and monitoring salary differences. Since 2021, companies with more than 50 employees are required to submit annual reports on the wage disparities between men and women. These reports help identify wage inequalities and hold companies accountable for any discrimination.

In 2025, legislation became even more stringent. Now, companies that show significant gender pay gaps will have to submit to the Authority for Working Conditions (ACT) an action plan to correct these inequalities. This measure aims to ensure that employers not only acknowledge the problem's existence but also adopt concrete strategies to promote wage equality.

In addition, more than 3,000 companies have already been notified by the Authority for Working Conditions (ACT) and have a 120-day deadline to present effective solutions to eliminate wage disparities. Non-compliance with these obligations may result in sanctions and penalties, reinforcing the need for a serious commitment to gender equality in the workplace.

Despite the measures, some challenges persist.

Despite legislative efforts, the gender pay gap is not just about differences in base salary. Many women still face difficulties in accessing leadership positions and well-paid roles, as well as in sectors traditionally dominated by men. In addition, motherhood and the need to balance professional life with family life are still factors that negatively impact women's career progression.

Another factor to consider is salary transparency. Although the new legislation requires companies to present reports, often salary differences result from unclear criteria in granting raises and promotions. Ensuring a higher level of transparency and a real commitment from companies will be essential to effectively combat this inequality.

Equal pay also contributes to economic growth

The measures implemented demonstrate Portugal's commitment to reducing wage disparities and promoting a fairer job market. However, the success of these policies depends not only on the effective application of legislation, but also on the involvement of companies, workers, and society in general.

Promoting wage equality is not just a matter of social justice, but also a key strategy for economic growth. Studies show that wage equity contributes to increased productivity, greater talent retention, and a more balanced and inclusive work environment.

Therefore, in order to ensure a future with greater equality, it is essential to continue to strengthen oversight, encourage good business practices, and raise awareness in society about the importance of gender equality in the labor market. Only through a joint effort will it be possible to eliminate the wage gap and ensure that men and women receive fair compensation for their work.

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