Portugal's Socialist government has approved an increase in the country's minimum wage to 600 euros a month ($687) from Jan. 1.
The Cabinet passed the proposal Thursday, saying in a statement that the measure would cover more than 750,000 workers.
When the center-left government came to power in 2015, the minimum wage was 505 euros a month. It has increased the amount each year, and it currently stands at 580 euros — the lowest in western Europe. In the European Union, only eastern European countries have lower minimum wages than Portugal.
The government, which faces a general election next October, also granted an extra 10 euros a month to pensioners.
Portugal's is one of the 19-country eurozone's smallest economies.