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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.

Topic

Recent updates

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In this special episode of Eurofound Talks for International Women's Day 2024, Mary McCaughey speaks with Eurofound researchers Carlos Vacas and Barbara Gerstenberger about the gender pay and employment gaps...
Podcast
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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...

26 January 2024
Publication
Research report

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 research manager in the Employment unit at Eurofound. He works on topics related to wage and income inequalities, minimum wages, low pay, job quality...

Research manager,
Employment research unit
Publications results (123)

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

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

The EU Presidency of Czechia organised a high-level conference in October 2022 on ‘Tackling energy poverty: EU approach & sharing best practices’. The event aimed to bring different actors together in order to strengthen the dialogue on possible solutions on how to further tackle energy poverty in

28 October 2022

In collecting information on essential services, the European Commission requested Eurofound to provide input on certain aspects of existing and planned measures in the Member States to improve access to essential services in reference to Principle 20 of the European Pillar of Social Rights. For

07 September 2022

After a cautious round of minimum wage setting for 2021, nominal rates rose significantly for 2022 as the negative consequences of the pandemic eased and economies and labour markets improved. In this context, 20 of the 21 EU Member States with statutory minimum wages raised their rates.

15 June 2022

Online resources results (888)

Austria: Latest working life developments – Q2 2016

Personnel changes and new proposals at federal level, the integration of refugees, entitlements to education and child support, and the results of collective bargaining are the main topics of interest in this article. This country update reports on the latest developments in working life in Austria

Slovenia: Police end a six-month strike following agreement

A six-month strike by police officers was suspended in June. The agreement between the government and police unions gives pay rises to police officers amounting to between 8% and 20% by 2018. However, it has struck a blow to unity of the public sector wage system.

Norway: Latest working life developments – Q2 2016

Rising unemployment, the biennial renegotiation of nationwide collective agreements and proposed changes to legislation on temporary layoffs, working time and whistle-blowing are the main topics of interest in this article. This country update reports on the latest developments in working life in

Portugal: Latest working life developments – Q2 2016

The re-introduction of four holidays and the 35-hour week in the public sector; as well as job precariousness and unemployment, are the main topics of interest in this article. This country update reports on the latest developments in working life in Portugal in the first quarter of 2016.

Cyprus: Latest working life developments – Q2 2016

Presidential intervention to prevent a doctors’ strike, a dispute about renewal of collective agreements for airport ground staff and social outcry over women’s exclusion from the National Guard are the main topics of interest in this article. This country update reports on the latest developments

Romania: Latest working life developments – Q2 2016

Opposition to new measures to reduce public sector wage inequality, a fresh start for the Social and Economic Council, and new measures to reconcile family and working life are the main topics of interest of this article. This country update reports on the latest developments in Romanian working

Greece: The third memorandum’s plans for public administration

The third Memorandum of Understanding for Greece came into force from January 2016, which sets out measures that the government will have to implement before the end of 2018. These include tax policy reform, a more sustainable pension system, and improved management of health sector finances.

Slovenia: Seventh public sector pay agreement signed

The Slovenian government and public sector trade unions have agreed seven public sector pay agreements since the start of the economic crisis in 2008 in an effort to protect public sector employment by limiting the wage bill. Despite good economic growth in 2015, the seventh agreement, signed in

Hungary: Developments in working life – Q1 2016

Industrial action and protests in various sectors, wage bargaining in the competitive sector, difficult bargaining at company level, and a European Court of Justice ruling on Hungary’s cafeteria regulations are the main topics of interest in this article. This country update reports on the latest

Norway: Developments in working life – Q1 2016

Rising unemployment, the start of the biannual collective bargaining round, a report from the expert committee on working time, and a new report focusing on young workers and sustainable work life are the main topics of interest in this article. This country update reports on the latest developments


Blogs results (21)
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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

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

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

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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

28 April 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

9 February 2021
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Following a sluggish response by many Member States to introduce or modify gender pay transparency measures, as it recommended in 2014, the European Commission intends to table a proposal for EU-level legislation on pay transparency later in 2020. In this context, a new Eurofound study investigated

6 November 2020

Upcoming publications results (2)

The 2024 annual review of minimum wages presents the most recent rates of national minimum wages and recalls how they were set and agreed upon during 2023. It includes information on minimum wages set in sectoral collective agreements in countries without national minimum wages.

August 2024

The report maps trends in income inequality and examines the situation of the middle classes in the EU during 2020, the year most associated with the COVID-19 lockdowns. It charts developments in the size and composition of middle-class households across countries, identifies those that suffered dis

July 2024
Data results (4)

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