European Union: minimum wages increase

European Union: minimum wages increase
To respond to inflation and protect European workers, the European Parliament has adopted last week a new legislation concerning minimum wages in the European Union.

Conditions are as follows:

  • Member-states will need to set a statutory minimum wage to at least 60 % of the gross median wage and 50 % of the gross average wage ;
  • Member-states where less than 80% of workers are covered by collective agreements will have to implement similar actions in order to increase the workers’ coverage.

Among the 27 countries of the European Union, the only countries determining wages through collective bargaining are Austria, Cyprus, Denmark, Sweden, Finland and Italy: there is no legal minimum wage.

This decision remains a national calculation, but Member States that do not respond to it will be fined. In addition, measures will be taken against countries that do not put enough action in place to “fight abusive subcontracting, bogus self-employment, undeclared overtime or increased work intensity“. Countries have two years to implement these measures.

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