Minimum wages in the EU

Minimum wages protect workers against unduly low pay, but to function effectively the mechanism depends on compliance by employers and enforcement by the state. This report examines the different approaches to measuring non-compliance and presents an estimate of the extent of non-compliance across the EU Member States. It discusses the different tools, regulations and institutions that Member States apply to enforce the minimum wage. And it presents findings from an analysis of 21 case studies of Member States that investigated the factors driving and discouraging non-compliance.

2023 m. metinė minimaliojo darbo užmokesčio peržiūra buvo parengta precedento neturinčios infliacijos visoje Europoje aplinkybėmis. Nors dėl jos daugelyje šalių nominalusis darbo užmokestis stipriai išaugo, daugeliu atvejų to nepakako, kad būtų išlaikyta darbuotojų perkamoji galia.

Minimum wages in Belgium exist at national and sectoral levels and are the outcome of collective bargaining. The national minimum wage typically lags behind sectoral minimum wages in Belgium, and policymakers have been concerned about the relative decrease in the national minimum wage compared with the national median wage, which was also noted during the preparation of the EU Directive on Adequate Minimum Wages.

On 31 August 2022, a new decree on minimum wages was published in Cyprus after a long and arduous process of negotiations and social dialogue. The ministerial decree, which came into effect on 1 January 2023, established a national minimum wage in Cyprus for the first time, a groundbreaking and controversial development that drew a multitude of reactions from social partners on both sides of industry.

Italy has no minimum wage prescribed by law. Minimum wages are set through collective agreements at sectoral level, and the majority of employees in Italy are covered by a collective bargaining agreement in which wages are set. This article outlines the latest positions (2023) of the government and the parliament regarding the introduction of a statutory minimum wage.

As the EU economy advanced its recovery following the pandemic, the high rate of inflation throughout 2022 meant that wage setting actors made their decisions under a cloud of uncertainty. While nominal increases in statutory minimum wages reached an all-time high, minimum wage workers in most countries saw their purchasing power decline or just about compensated at the beginning of 2023, based on preliminary harmonised inflation figures. With inflation expected to persist, a further depreciation of minimum wages in real terms can be expected in most Member States, as only a few foresee additional increases in 2023.

Ši ataskaita parengta įgyvendinant trejų metų (2021–2023 m.) bandomąjį projektą „Minimaliojo darbo užmokesčio vaidmuo nustatant Visuotinę darbo garantiją“, kurį Europos Komisija pavedė vykdyti EUROFOUND. Pagrindinis dėmesys skiriamas projekto 3 moduliui, kuriame nagrinėjamas minimaliųjų darbo užmokesčių ir kitų formų užmokesčių savarankiškai dirbantiems asmenims klausimas.

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 among minimum wage earners. On 6 June 2022, the Council of the EU and the European Parliament reached a political agreement on the Directive on adequate minimum wages proposed by the Commission in October 2020. Once formally approved, EU Member States will have to transpose it into national law within two years.

Po 2021 m., kai minimalusis darbo užmokestis buvo nustatomas atsargiai, 2022 m. nominalieji jo tarifai buvo gerokai padidinti, nes sušvelnėjo neigiamos pandemijos pasekmės, ir ekonomikos ir darbo rinkos ėmė atsigauti. 20 iš 21 ES valstybių narių, kuriose yra įvestas nustatytasis minimalusis darbo užmokestis, jo tarifus padidino. Kitaip nei senosiose valstybėse narėse, Vidurio ir Rytų Europos valstybėse narėse ekonomika akivaizdžiai augo, o didžiausias augimas užfiksuotas Vokietijoje.

The first overview of minimum wage setting for 2022 shows that, while some negotiations are still ongoing, virtually all EU Member States have increased their nominal statutory rates. Compared to last year, when most countries settled for cautious increases against a background of deep uncertainty caused by the pandemic, growth in statutory rates for 2022 was stronger, reflecting an easing of the situation. This was especially the case in central and eastern European countries, where some increases were in double digits. Nevertheless, inflation is back in the picture and should be monitored in the coming months to get an insight into how the increases in nominal minimum wage rates translate into actual changes in the purchasing power of minimum wage earners.