How to Calculate the Hourly Value?
The hourly rate is the amount received for each hour
of work performed. In general, the calculation of the minimum hourly rate
serves as a basis for determining the amount that the worker should receive as
a holiday allowance or any overtime.
Examples of Minimum Hourly Wage
Calculating hourly pay is simple, you just need to
know some data and do some quick math. There are two ways to calculate the
hourly rate, a simpler one, which allows you to have a general idea, and another
that allows you to know the amount received more accurately.
Simple Calculation of the Hour Value
Using this form of calculation, it is only possible to
identify the hourly rate received in each month and not the hourly rate earned
throughout the year.
Thus, if the company employee's salary is €800 and he
has worked for a month (5 days a week/eight hours a day), the calculation of
the hourly rate will be as follows, depending on the days of the month:
January (22 working days) - €800/(22x8) = €4.54
February (20 working days) - €800/(20x8) = €5.00
March (18 working days) - €800/(18x8) = €5.55
Complex Calculation of the Hour Value
Article 271 of the Labor Code includes a formula that
allows for a more rigorous calculation of the value of the normal working hour.
This calculation is used because the majority of workers hired by a company are
not paid on the basis of the hours they work. On the contrary, you receive the
same salary every month, regardless of the days of the month.
Minimum Hourly Wage = (Base monthly salary/weekly
hours) x (12 months/52 weeks)
Thus, using the same base value (800€), for a full-time
schedule (40 hours per week), the hourly value is calculated as follows:
Minimum Hourly Wage = (800/40) x (12 months/52 weeks) =
€4.62
Minimum Wage in Portugal
The value of the minimum wage has fluctuated over time
and varies whether we are talking about Mainland Portugal, Madeira Island, or
the Azores. For example, in 2021, the minimum wage in mainland Portugal - an
amount received by around 20% of the working population in Portugal - increased
by 30 euros.
The minimum wage in the Autonomous Region of Madeira
represents 102% of the national minimum wage.
The minimum wage in the Autonomous Region of the
Azores is 105% of the national minimum wage, according to Regional Legislative
Decree 1/2000/A of 12/1.
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(Author)
Raj Don
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