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In Sweden, which unlike a number of other EU Member States has no legislation on a national minimum wage, term used in the sense of the minimum rate which by collective agreement must be paid in all circumstances for certain work or to employees of a certain category. (The expression lägstalön, i.e. pay minima, is used in a similar sense.) Personal contracts which are concluded between individual employees and employers bound by a collective agreement specifying such minimum rates and which provide for rates lower than those specified minima are invalid, and an employer who pays rates below the minima incurs liability for breach of the collective agreement concerned. There is, on the other hand, a special type of agreement called minimilöneavtal under which the employer is free to pay rates above the specified minima. Furthermore, the rules on pay minima laid down in the collective agreement which is normally applicable to manual workers in the engineering industry (see Engineering Agreement) signify that the employer is obliged to a certain extent to pay competent and experienced manual workers rates higher than the agreed minima. See also entry pay.)

Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.

Page last updated: 14 August, 2009