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Pay and income

Pay and income are central to employment relations and quality of life. The issue has received even more attention at EU level due to crisis-inflicted developments in the economy and in society as a whole.

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Eurofound research

Eurofound reports on various aspects of pay and income in light of changing economic circumstances across Europe.

Pay monitoring

Eurofound research brings together a range of information on pay. The regular nature of reporting generates a longer series of observations on collectively agreed pay, so that trends can be monitored. Eurofound publishes regular reports on statutory minimum wages and collectively agreed pay. It also monitors national-level developments in relation to wage-setting mechanisms, equal pay, variable pay, low pay and the gender pay gap.

Working life country profiles contain information on pay at national level and are regularly updated. 

Eurofound's European Jobs Monitor (EJM) assesses shifts in employment by job, according to various qualitative measures including pay. In particular, it contributes to our knowledge on the phenomenon of employment polarisation – that is, the extent to which employment growth is likely to be greater at the top and bottom of the wage distribution than in the middle.  

Pay transparency

In light of the discussion around pay discrimination and equal pay in the EU, Eurofound research looks at the issue of pay transparency, including measures to promote gender pay transparency in companies and experiences in different Member States. 

Survey data

Eurofound’s surveys also monitor pay conditions in the EU. Pay is central to Eurofound’s research in assessing quality of work. In the European Working Conditions Survey (EWCS), earnings  is one of seven indicators of job quality. The EWCS also reports on the gender pay gap. Explore the EWCS data explorer.

The European Quality of Life Survey (EQLS) monitors the impact of income on living standards and how income inequality is related to social cohesion and well-being. It analyses how the crisis has affected families, looking at low-income families, household debt and those groups at risk of poverty. The EQLS also gathers information on income in retirement and options for extending working lives. Explore the EQLS data explorer.

The European Company Survey (ECS) captures the use of variable pay schemes in establishments, as well as the coverage of the employees in those establishments by collective wage agreements. The survey allows to link the information on variable pay and wage bargaining with information on work organisation, human resource management, direct employee participation and social dialogue, as well as with performance and workplace well-being.

Eurofound also looks at the issue of wages as a key aspect of inclusive labour markets. Research explores the concept of a living wage, which differs from statutory minimum wages or minimum income schemes. The research investigates how this has been implemented or advocated as a means to provide an adequate income allowing a decent standard of living and full participation in society.

Key outputs

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The 2023 annual review of minimum wages was prepared in the context of unprecedented inflation across Europe. While this led to hefty increases in nominal wage rates in many countries...

29 June 2023
Publication
Research report
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This report explores the distribution of household wealth in the EU Member States and analyses the role of wealth in social mobility. Using data from three datasets (the Household Finance...

30 March 2021
Publication
Research report

EU context

The European Pillar of Social Rights sets out the EU’s commitments on wages: the right of workers to fair wages that provide for a decent standard of living; ensuring adequate minimum wages; preventing in-work poverty.

Following a proposal by the European Commission in October 2020, the European Parliament and Council of the EU adopted a new Directive on adequate minimum wages on 19 October 2022. It aims to reduce in-work poverty, promote collective bargaining on wages and increase access to minimum wage protection.

On 30 January 2023, the Council adopted a Recommendation on adequate minimum income ensuring active inclusion. 

To strengthen the principle of equal pay for work of equal value between men and women, the Council adopted a new Directive on pay transparency on 24 April 2023. The directive aims to tackle pay discrimination and help close the gender pay gap in the EU.

 

European Industrial Relations Dictionary 

Eurofound expert(s)

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Christine Aumayr-Pintar is a senior research manager in the Working Life unit at Eurofound. Her current research topics include minimum wages, collectively agreed wages and gender...

Senior research manager,
Working life research unit
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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...

Senior research manager,
Employment research unit
Publications results (126)

This report describes the implementation and changing features of job retention schemes in the EU between 2020 and 2022. In response to the COVID-19 health emergency, EU governments swiftly deployed job retention schemes to preserve employment, support businesses and maintain individual incomes.

23 September 2024

This report examines trends in income inequality in the EU and explores whether the middle class is becoming smaller due to disparities in household disposable income.

12 July 2024

This 2024 annual review of minimum wages provides a synopsis of minimum wage setting during 2023 in the EU27 and Norway. It reports in detail on the processes and outcomes of setting the minimum wage rates for 2024 and beyond. It investigates the extent to which minimum wage earners were affected by

26 June 2024

In this pilot project, Eurofound successfully established the feasibility of, and piloted, an EU-wide database of minimum pay rates contained in collective agreements related to low-paid workers. A conceptual and measurement framework was devised, a total of 692 collective agreements – related to 24

26 January 2024

The urban-rural divide in EU countries has grown in recent years, and the depopulation of certain rural areas in favour of cities is a challenge when it comes to promoting economic development and maintaining social cohesion and convergence.

18 October 2023

After a long period of price stability, inflation has made a remarkable comeback in the EU. While nominal wages picked up in 2021 and 2022, real wage growth has remained below inflation, affecting mainly low-income groups.

06 September 2023

The 2023 annual review of minimum wages was prepared in the context of unprecedented inflation across Europe. While this led to hefty increases in nominal wage rates in many countries, it was in many cases not enough to maintain workers’ purchasing power. Based on developments over the last decade,

29 June 2023

Unaffordable housing is a matter of great concern in the EU. It leads to homelessness, housing insecurity, financial strain and inadequate housing. It also prevents young people from leaving their family home. These problems affect people’s health and well-being, embody unequal living conditions and

30 May 2023

The COVID-19 pandemic had varying impacts on social groups, depending on existing disadvantages, and it was widely believed that it triggered a rise in inequalities across different areas of life. Using indicators from the EU’s Multidimensional Inequality Monitoring Framework (MIMF), this report sho

24 January 2023

This report is carried out in the context of the three-year pilot project (2021–2023), ‘Role of the minimum wage in establishing the Universal Labour Guarantee’, mandated to Eurofound by the European Commission. Its focus is module 3 of the project, investigating minimum wages and other forms of pay

30 November 2022

Online resources results (922)

A snapshot of income inequality and middle class across the EU

After years of being sidelined in the European policy debate as labour markets recovered in the wake of the Great Recession, inequality is back on the agenda following the COVID-19 pandemic and the ensuing cost-of-living crisis. A widespread public perception is that inequality is growing while the

Real-term value of negotiated wages eroded – what can be done?

Inflation and economic uncertainty continued to influence collective wage bargaining in 2023. As a result, any gains made in real terms (in the ‘median’ EU country) since 2009 were eroded between 2020 and 2023.

Mary McCaughey speaks with Eurofound Research Manager Carlos Vacas about the situation of the middle class in Europe. They look at developments over the past two decades, the significance of income adequacy and equality in the development of a robust middle class in Europe.

30 September 2024

Labour disputes across Europe in 2023: Ongoing struggle for higher wages as cost of living rises

The year 2023 was marked by several significant labour disputes across Europe, even in countries with a traditionally ‘quiet’ industrial relations landscape. The main reason for industrial unrest was wages not keeping pace with the increasing cost of living. The most affected sectors were transport,

Towards adequate minimum wages: Fairness and a decent standard of living

The adequacy of minimum wages established by the EU Minimum Wage Directive shall be assessed on two dimensions: fairness and the provision of a decent standard of living. It is up to the Member States to decide on their approaches to assessing the adequacy of minimum wage levels.

Working life in Czechia

This profile describes the key characteristics of working life in Czechia. It aims to provide the relevant background information on the structures, institutions and relevant regulations regarding working life.

Working life in Cyprus

This profile describes the key characteristics of working life in Cyprus. It aims to provide the relevant background information on the structures, institutions and relevant regulations regarding working life.

Working life in Croatia

This profile describes the key characteristics of working life in Croatia. It aims to provide the relevant background information on the structures, institutions and relevant regulations regarding working life.

Working life in Bulgaria

This profile describes the key characteristics of working life in Bulgaria. It aims to provide the relevant background information on the structures, institutions and relevant regulations regarding working life.

Working life in Austria

This profile describes the key characteristics of working life in Austria. It aims to provide the relevant background information on the structures, institutions and relevant regulations regarding working life.


Blogs results (22)

The housing crisis could be tackled by improving public services, better urban planning and ensuring that social protection benefits reach the people who need them most.

2 May 2024
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The COVID-19 pandemic has changed the way we live and work. With the lifting of restrictions across the globe, we are now able to examine the many repercussions on the world of work. In particular, the unique demands of the last few years have shone a harsh spotlight on the pressures brought to bear

17 January 2023
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Rising energy prices are putting more people under increased financial pressure and at greater risk of energy poverty. In this data story, we take a closer look at the data from the fifth round of the Living, working and COVID-19 e-survey to explore the extent of the issue and the threat of energy

3 August 2022
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Minimum wages have risen significantly in 2022, as the EU Member States leave behind the cautious mood of the pandemic. However, rising inflation is eating up these wage increases, and only flexibility in the regular minimum wage setting processes may avoid generalised losses in purchasing power amo

15 June 2022
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While the number of employees earning the minimum wage has increased across Europe over the last decade, spurred by significant minimum wage hikes, a clear gender divide emerges, with minimum wage earners more likely to be women. Minimum wage earners are also more likely to live in materially depriv

26 October 2021
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With its proposed directive on gender pay transparency, the European Commission has significantly bolstered the set of tools for delivering its objectives compared to those presented in its 2014 Recommendation. The proposed portfolio of measures addresses many shortcomings of the instruments that na

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Decision-makers approached minimum wage setting for 2021 cautiously due to the economic uncertainty caused by the pandemic. Despite this, nominal statutory minimum wages rose in most Member States and the UK, although at lower rates than in recent years.

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The pandemic has had differential impacts on women. Raised consciousness about them must be applied to advance gender equality in recovery measures. All crises have a strongly gendered impact and none more so than the current pandemic, across a range of indicators. While the virus itself seems to ta

28 April 2021
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This year’s theme to mark International Women’s Day on 8 March is Choose to Challenge (or #ChooseToChallenge, if you prefer). The idea is to highlight that ‘from challenge comes change’ and that ‘we can all choose to challenge and call out gender bias and inequality’.

8 March 2021
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​​​​​​​To date, close to six million workers in the EU have lost their jobs due to COVID-19. Many businesses have closed their doors forever or been pushed to the brink, bringing severe financial and psychological hardship to the individuals and families affected. However, the toll of the pandemic c

9 February 2021

Data results (4)

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