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Last updated: 1 September 2026

Minimum wage

The term ‘minimum wage’ refers to the regulatory restriction on the lowest rate payable by employers to workers. Statutory minimum wages are regulated by formal laws or statutes. Collectively agreed minimum wages are stipulated within collective agreements between trade unions and employers. The term ‘national minimum wages’ is used when countries have one (or more) basic rates covering workers nationwide. They can be either statutory or collectively agreed.

Find the latest content on this topic below.

1 September 2026
Minimum wages in 2026: Annual review
Minimum wage setting across the EU has become an increasingly dynamic and closely watched policy area, shaped by the transposition of the EU Minimum Wage Directive and a decade of sustained real-terms growth in statutory rates. This report examines the wage-setting discussions that took place across Member States and Norway in 2025, focusing on the countries with and without a national minimum wage, the interplay between minimum wages and collective bargaining in low-paid sectors, and the growing role of indicative reference values in shaping national decisions.
Felix Appler+2
Research report
16 July 2026
National minimum wages in the EU: policy-driven growth, continued convergence and increased proximity to negotiated wages
Over the past year, national minimum wages continued to rise substantially across the EU, especially in central and eastern European countries, continuing the narrowing of regional disparities. The EU Minimum Wage Directive has emerged as a significant driver of minimum wage hikes in many countries, exceeding inflation levels and increasing faster than collectively agreed wage floors in many low-paid sectors.
Carlos Vacas‑Soriano+1
Article
September 2026
Forthcoming
Low-paid jobs: Employment trends and impact of minimum wage policies
This report examines the long-term effects of minimum wage policies on employment structures across the EU-27 over the past two decades. It systematically analyses how changes in sectoral and occupational employment patterns are linked to these policies.
Carlos Vacas‑Soriano
Research report

Last updated: 4 September 2026

  • National minimum wages increased between 1 January 2025 and 1 January 2026 in all EU countries but Estonia (where the decision was delayed until April 2026) and Romania (where the rate remained unchanged in January, but was later increased from July). This has resulted in gains in purchasing power among minimum wage earners in virtually all countries, some of them being substantial. The Minimum Wage Directive has influenced the way increases were made in many countries, as many Member States aimed to ensure that their nominal rates reached a certain value expressed in relation to average/median wages.

  • The strong upward trend in statutory minimum wages in many countries has brought them closer to the indicative reference values of 60% of median or 50% of average wages, which are mentioned as examples in the Minimum Wage Directive.

  • National minimum wages have become fairer as compared to other workers’ wages since the beginning of the millennium, when comparing statutory minimum wages to the median wages of all workers. The practice of linking minimum wages to a percentage of average or median wages, as suggested in the Minimum Wage Directive, continued in 2026, with an increasing number of EU countries adopting this practice either in laws or practice.

  • Women are overrepresented among minimum wage earners in nearly all Member States, irrespective of how minimum wage earners are defined. This is even more the case for younger employees and those with a lower level of educational attainment.

  • Among all minimum wage earners, 23% reported difficulties in making ends meet in 2022 on average across EU Member States – 10 percentage points higher than for other workers. Also, 10% of minimum wage workers in the EU reported difficulties with keeping their homes adequately warm, compared to 6% of others. Eurofound’s EU PolicyWatch database also shows that governments have often referred to the statutory minimum wage when determining upper or lower thresholds for the level of income support benefits, such as those for short-time work.

Our infographic provides further details of the situation as of 2020.

Background
1 May 2025
Episode 32How are minimum wage levels changing in Europe?
In this episode Mary McCaughey sits down with Eurofound expert Carlos Vacas Soriano to explore how minimum wages have changed in Europe over the past year, as well as the implications of these shifts.Listeners are invited to dive into the intricacies of Europe's minimum wage dynamics and the factors driving these changes. The conversation also sheds light on the broader implications of minimum wage change for income inequalities and gender equality.
Podcast episode

Eurofound provides regular updates on pay in the EU, including an annual study on how minimum wage rates have developed across the EU (as well as Norway), reviewing how national governments and social partners engage in setting new rates. The Agency also looks at the concept of a living wage, aimed at guaranteeing workers and their families a decent level of living and social participation in response to the inadequacy of income for many working households reliant on existing national minimum wage rates.

Minimum wage developments

Eurofound’s annual review of minimum wages for 2026 provides data on the significant progress on national minimum wages over the past decade, where minimum wages have typically outperformed inflation and average wages have increased in most countries. Eurofound publishes a set of minimum wage country profiles which provide detailed background information on how minimum wages are set and regulated in the EU and Norway.

In an earlier study on pay in Europe in the 21st century, Eurofound explored the implications of a hypothetical scenario of a minimum wage coordinated at EU level and set at 60% of the median national wage.

Minimum wage versus living wage

A related but distinct concept to having a national minimum wage is that of a living wage, which is a wage designed to secure a basic but acceptable standard of living for its earner (and, in some cases, household dependents). Living wage campaigns are generally voluntary and rely on coalitions of interest groups, trade unions and employers working together. These campaigns can take on an advocacy role (Ireland) as well as an accreditation role (UK) where organisations are formally accredited as living wage employers. In line with the fair wage provisions set out in the European Pillar of Social Rights, Eurofound research aims to provide policymakers with a practical guide to the living wage concept. 

Impact of COVID-19 for low-wage earners

The ongoing minimum wage debate is likely to be influenced by the COVID-19 pandemic and its aftermath, as many workers delivering essential services during the pandemic were those at the bottom of the pay ladder, while other low-wage workers were the first to be affected by unemployment. Eurofound’s Living and Working in the EU e-survey documents the situation of European respondents and their post-pandemic concerns, including those on low incomes and those struggling to makes ends meet due to rising living costs. Minimum wages could play a policy role in stabilising incomes. 

Most EU Member States have a national (statutory) minimum wage in place, although its level, adjustment mechanisms and coverage vary. Austria, Denmark, Finland, Italy and Sweden have minimum wages set within collective agreements.

The European Pillar of Social Rights, proclaimed in 2017, sets out the EU’s commitment to fair wages for workers. This includes ensuring adequate wages for workers to allow them and their families to have a decent standard of living, safeguarding the ability of the low-skilled and young workers to find employment, while also making work financially attractive. The Action Plan to implement the Pillar, published in March 2021, has paved the way for a reform initiative for an EU minimum wage. 

On 28 October 2020, the Commission put forward a proposal for an EU Directive on adequate minimum wages. This was followed by a political agreement between the European Parliament and the Member States on 7 June 2022. The Minimum Wages Directive was adopted in October 2022. It aims to improve standards of living with a view to achieving upward convergence and reducing in-work poverty, wage inequalities, and the gender pay gap. Member States were required to transpose the directive into national law by November 2024 (Article 17). In 2023, Denmark requested the full or alternatively partial annulment of the directive from the Court of Justice of the EU (C-19/23). On 11 November 2025 the CJEU passed its ruling, confirming the legal validity of it, subject to a partial annulment.

This is a selection of the most important outputs for this topic.

Researchers at Eurofound provide expert insights and can be contacted for questions or media requests.

Carlos Vacas‑Soriano

Senior research manager
Employment research

Carlos Vacas Soriano is a senior research manager in the Employment unit at Eurofound. He works on topics related to wage and income inequalities, minimum wages, low pay, job quality, temporary employment and segmentation, and job quality. Prior to joining Eurofound in 2010, he worked as a macroeconomic analyst for the European Commission and as a researcher in European labour markets at the Spanish Central Bank. He holds an MA in European Economic Studies from the College of Europe in Bruges and a PhD in Labour Economics from the University of Salamanca (Doctor Europaeus).

Christine Aumayr-Pintar

Senior research manager
Working life research

Christine Aumayr-Pintar is a senior research manager in the Working Life unit at Eurofound. She coordinates Eurofound’s research on social dialogue and industrial relations and oversees the Network of Eurofound Correspondents (NEC). Her primary research expertise – approached from a comparative EU-wide standpoint – centres on minimum wages, collectively negotiated pay and gender pay transparency. Prior to joining Eurofound in 2009 she was a labour markets and regional economics researcher at Joanneum Research in Austria. She earned a Master's degree in Economics and a PhD in Social Science/Economics having studied economics in Graz, Vienna and Jönköping.

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