Portugal updates pay transparency laws as high earners quadruple

Portugal is developing national legislation to implement the EU Pay Transparency Directive. A government proposal suggests that while companies may not be required to list specific salaries in job advertisements, they must inform candidates of the initial salary or range before an employment contract is signed.

The proposal also includes measures to prevent employers from asking candidates about their current or previous earnings. Additionally, employees will gain the right to request information regarding their own pay and average pay levels broken down by gender for roles of equal value. Companies with at least 50 employees will be required to disclose the criteria used to determine salaries.

Separately, data from consultancy Randstad shows that the number of Portuguese workers earning more than €3,000 net per month has quadrupled between 2016 and 2026, rising from 28,700 to 125,000. Despite this growth, high earners represent only 2.7% of the employed population, with the majority of workers still earning between €900 and €1,200 per month. The data also highlights significant gender and geographic disparities, noting that 69.2% of those in the highest salary bracket are men.