Policy brief 9 – How much does a self-employed worker need to earn the minimum wage in Portugal?

IPP Policy Brief 9, How much does a self-employed worker need to earn the minimum wage in Portugal? (in Portuguese)by Daniel Carolo (senior research fellow do Institute of Public Policy), compares the situation of self-employed workers (in particular taking into account the situation of “bogus” self-employed workers which work mostly for only one firm) with regular workers earning the minimum wage in Portugal, given current rules in terms of personal income tax collection and social contribution.

Its main conclusions are: i) the minimum wage would be equivalent to about a yearly income of 10,335 EUR for self-employed workers, and as such according to available data there are many self-employed workers in Portugal earning below that value; ii) income collection and social contribution rules should be change to make the situation more equitable.