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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)

Slovenia: Cross-border workers create new union

With more than 20,000 Slovenian workers travelling daily to work in Austria, Slovenian cross-border workers have established a new trade union to fight double taxation.

Ireland: Developments in working life – Q1 2016

The first General Election since Ireland exited the bailout programme, continuing local pay bargaining and a six-day strike over pay at light rail tram company Luas are the main topics of interest in this article. This country update reports on the latest developments in working life in Ireland in

United Kingdom: Developments in working life – Q1 2016

The forthcoming referendum on the UK’s membership of the European Union and the UK’s productivity gap are the main topics of interest in this article. This country update reports on the latest developments in working life in the UK in the first quarter of 2016.

Czech Republic: Developments in working life – Q1 2016

Positive trends in economic performance (raising the issue of an imbalance between cheap labour and productivity), measures to deal with disadvantaged groups on the labour market, and equal pay are the main topics of interest in this article. This country update reports on the latest developments in

Italy: New Stability Law extends range of tax-exempt benefits

Italy’s 2016 Stability Law supports the uptake of private welfare measures by extending the types of tax-exempt benefits offered by employers to include those agreed through collective bargaining.

Cyprus: Report analyses impact of crisis and adjustment programme

The annual economic report of the Cyprus Labour Institute concludes that fiscal adjustment had negative effects on GDP, employment and the unemployment rate, diverted resources from social uses towards servicing public debt, and caused a sharp deterioration in living conditions.

Finland: Immigrant employment – debate and action

Social partners seek to facilitate the integration of immigrants, but trade unions dismiss proposals for reduced salaries for unqualified immigrants.

Norway: Employer confederations seek minimum wage for refugees and immigrants

There is no national statutory minimum wage in Norway. However, several employer confederations have taken an initiative to introduce a minimum wage in relation to the current refugee situation.

Croatia: Developments in working life – Q1 2016

​The election of Croatia’s new Prime Minister and government, and serious challenges to public finance over public-sector wages are the main topics of interest in this article. This country update reports on the latest developments in working life in Croatia in the first quarter of 2016.

Slovenia: Controversy over amendments to the Minimum Wage Act

The definition of the minimum wage in Slovenia was changed at the end of November 2015. From 1 January 2016, the allowances for unfavourable working time (night, Sunday and holiday work) are exempted from it and paid separately. Trade unions are pleased, but employer organisations were outraged and


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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