Minimum wages in the EU

The coronavirus disease (Covid-19) is having drastic consequences for the world of work. In most European countries workers who are not delivering essential ‘frontline’ services are being asked to stay home. Unfortunately many are out of work, while many of those who are not are minimum-wage and low-pay workers, including those working in retail and food-supply chains. How can we ensure that these workers, so essential to our daily lives, are adequately and fairly paid?

As one of their ‘100 days in office’ initiatives, the new European Commission intends to propose an initiative for an EU minimum wage. The aim is that by 2024 every worker in the EU should earn a fair and adequate wage, no matter where they live.

The Socialist-led Spanish government that emerged last summer had, by the end of 2018, approved a hike in the statutory minimum wage. This was agreed with the left-wing Podemos party as part of an attempt to secure the parliamentary support needed for passing the proposed 2019 budget – although failure to do so resulted in the April election. The new minimum wage came into force on 1 January, rising from 14 monthly payments of €735.90 per year to €900 for those in full-time employment.

In most EU Member States, reviews of the statutory minimum wage rates spark a great deal of public interest. Such reviews affect the wider workforce, beyond those workers on the statutory minimum wage. Pay rates in collective agreements may be adapted in response to an increase in the minimum wage, affecting lower-paid workers more generally; social benefits may also be affected, making the impact of such revisions even more widespread. This report covers developments in statutory minimum wages in 2018–2019 in the EU and Norway.

In the majority of Member States, the minimum wages rates were increased in January 2019. The first findings on the minimum wage-setting process during 2018 show that a rise in political influence in some countries and issues regarding the transparent and predictable way of setting minimum wages in others played an important role this year. Positive economic developments in most Member States strengthened the demand for larger increases in the minimum wage.

The term ‘minimum wage’ refers to the various legal restrictions governing the lowest rate payable by employers to workers, regulated by formal laws or statutes. This report provides information on statutory minimum wages that are generally applicable in a country and not limited to specific sectors, occupations or groups of employees. While the scope of the report covers all 28 EU Member States, the main findings relate to the 22 countries that had a statutory minimum wage in place in 2018.

In 22 out of 28 EU Member States, a generally applicable statutory minimum wage exists; the level of this minimum wage varies greatly from one country to another. This article provides information on statutory minimum wage levels, how the minimum wage has been determined for 2017 and minimum wage coverage across the EU. The data show that the minimum wage grew more over the year preceding 1 January 2017 than the year before.

In 22 out of 28 EU Member States, there is a generally applicable statutory minimum wage and the level of this minimum wage varies greatly from one country to another. This article provides information on statutory minimum wage levels and how this is determined across the EU in January 2016.

Most EU Member States have a statutory minimum wage which sets the lowest legal amount of pay for all employees (some also have specific lower minimum levels for certain groups of workers, mainly younger ones). Germany joined this group of countries on 1 January 2015. This has triggered some debate in those countries which have minimum wage levels set within collective agreements. The implementation and enforcement of the German legal minimum wage will have impacts not only at national level but even, as already seen through the discussions raised in the road transport sector, at pan-European level, especially with regard to the posting of workers. This article presents the most recent data on statutory minimum wages, applicable on 1 January 2015 (see table), and an overview of the discussions leading to the final settlements made in 2014.