Minimum wages in the EU

Eurofound's annual review of minimum wages reports on the development of statutory and collectively agreed minimum wages across the EU and the processes through which they were set. The focus of this year’s report is on the impact of high inflation on the setting of minimum wage rates. In addition, new figures on the net value of minimum wages are presented, along with the latest policy-relevant research in the EU Member States and Norway.

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.

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 deprived households.  

Šioje ataskaitoje apibendrinama, kaip minimaliojo darbo užmokesčio normos 2021 m. buvo nustatytos per 2020 m. – COVID-19 pandemijos metais. Peržiūrimi sunkumai, su kuriais nacionaliniai sprendimus priimantys subjektai susidūrė, ir kaip jie sprendė ekonominio ir socialinio pandemijos sukelto nuosmukio problemas, priimdami sprendimus dėl minimaliojo darbo užmokesčio. Pažymima, kokiu mastu minimalusis darbo užmokestis buvo svarstytas, taikant su COVID-19 susijusias paramos priemones.

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.

​​​​​​​Despite the unusually tough economic and labour market conditions, most EU Member States made nominal and real increases to their minimum wages in 2020. This is what a first overview of recent minimum wage developments reveals. Some countries lived up to earlier promises or pre-agreements, while other countries strayed somewhat off their original path but still maintained the overall trend of increasing minimum wages in line with other wages. Although most countries were cautious in the level of increase granted, low inflation rates meant that the value of minimum wages still went up beyond rises in consumer prices. For the time being, at least, it can be concluded that the policy response in the context of the COVID-19 pandemic is distinct from the approach taken during the global financial crisis, when a greater number of countries moved quickly to freeze nominal minimum wages.