Pay developments – 2007

The review of pay trends in Europe in 2006 and 2007 finds that average collectively-agreed nominal wage increases across the EU rose from 5.6% in 2006 to 7% in 2007. However, taking into account rising inflation, the rate of real increase fell from 2.7% in 2006 to 2.3% in 2007. During the period under review, differences between the ‘old’ and ‘new’ EU Member States, in terms of both pay trends and the level of pay increases, persisted and indeed widened. The report also looks at collectively-agreed pay increases in three selected sectors (chemicals, retail and the civil service), current wage rates and minimum wage increases, increases in average earnings, and the extent of the gender pay gap across all countries.