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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 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)

This annual review highlights the most significant developments that took place in industrial relations in the EU Member States and Norway in 2009, both at national and EU level. It first sets out the political context, then goes on to examine levels of coverage of collective bargaining, and trends

27 June 2010

EIRO’s annual analysis of pay trends finds that the average collectively agreed nominal wage increase across the EU fell from 5% in 2008 to 4.2% in 2009. In the former EU15, the average nominal increase declined from 3.8% in 2008 to 3.1% in 2009, while in the 12 new Member States that joined the EU

23 June 2010

This background paper by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) investigates the different forms of wage indexation that can be found across Europe. It presents the main characteristics of wage indexation, and looks at the legislation and levels of

14 March 2010

This report uses recent findings from two observatories of the European Foundation for the Improvement and Living Conditions (Eurofound); the European Industrial Relations Observatory (EIRO) and the European Restructuring Monitor (ERM) – as well as Eurostat data, to examine trends in compensation

14 March 2010

Wage differentials between men and women across Europe are a major policy concern for the European Commission and the social partners. This report provides an overview of national studies on the gender pay gap, and examines the policies and actions of governments and social actors to combat pay

08 March 2010

EIRO’s annual analysis of pay trends finds that the average collectively agreed nominal wage increase across the EU fell from 7% in 2007 to 6.6% in 2008. Taking into account inflation, which rose strongly in 2008, the rate of real pay increase across the EU fell sharply, from 3.6% in 2007 to 1.3% in

03 September 2009

The review of pay trends in Europe in 2006 and 2007 finds that average collectively-agreed nominal wage increases across the EU rose from 5.6% in 2006 to 7% in 2007. However, taking into account rising inflation, the rate of real increase fell from 2.7% in 2006 to 2.3% in 2007. During the period

03 August 2008

This review of pay trends in Europe in 2005 and 2006 finds that average collectively-agreed nominal wage increases across the EU rose from 4.9% in 2005 to 5.6% in 2006. When inflation is taken into account, the rate of real increase rose from 1.9% in 2005 to 2.7% in 2006. However, the data show that

01 July 2007

Profound socio-economic, demographic and cultural changes currently under way in Europe are modifying the way in which people organise their time and income over the life course. The ageing population, globalisation, the transition from a standard working organisation model to more diversified and

30 March 2006

Income security and economic well-being have a huge bearing on people’s overall quality of life. Recent enlargement of the European Union has reshaped the contours of the economic landscape in Europe, resulting in a widening of the gap between the richest and poorest countries. A recent Foundation

21 December 2005

Online resources results (888)

Slovakia: Latest working life developments – Q3 2016

Differences between social partners on a proposal to increase the minimum wage, demands by industrial trade unions for higher wages and strike action by teachers are the main topics of interest in this article. This country update reports on the latest developments in working life in Slovakia in the

Germany: Latest working life developments – Q3 2016

Falling unemployment and an improved business outlook, the views of social partners on proposed equal pay legislation, and the rise of the right-wing AfD party are the main topics of interest in this article. This country update reports on the latest developments in working life in Germany in the

Poland: Latest working life developments – Q3 2016

A protest in the public healthcare system, discontent in the education sector, significant legislative initiatives and support for a ban on Sunday shop opening are the main topics of interest in this article. This country update reports on the latest developments in working life in Poland in the

Spain: Latest working life developments – Q3 2016

A slight fall in unemployment and trade union concerns over labour precariousness, and the need for social partners to reach agreement on a new salary pact are the main topics of interest in this article. This country update reports on the latest developments in working life in Spain in the third

Germany: Latest findings from DGB Good Work Index

The German Confederation of Trade Unions (DGB) introduced the DGB Good Work Index in 2007 as a measurement tool, based on data from an annual survey, for monitoring quality of work. This article describes the background to the DGB Good Work Index, the most recent findings and the debate around the

Latvia: Latest working life developments – Q2 2016

Radical changes in the State Revenue Service targeted at fighting corruption and the shadow economy, the battle by education and healthcare unions for better pay, and the publication of several important research reports are the main topics of interest in this article. This country update reports on

Finland: Tripartite Competitiveness Pact signed

The ‘Competitiveness Pact’, a tripartite labour market agreement, was signed in June 2016 after over a year of difficult negotiations. The Pact involves a nationally and internationally exceptional deterioration of workers’ terms and conditions. The negotiation process had disruptive repercussions

Romania: Protests over proposed law on wage-setting in the public sector

A new emergency bill on public sector employees’ wage-setting was adopted on 8 June 2016, despite opposition and protest from trade unions.

Slovakia: Latest working life developments – Q2 2016

Collective agreements in the metal industry, the settlement of a dispute in a transport company, a new law on posting of workers and figures on workplace accidents are the main topics of interest in this article. This country update reports on the latest developments in working life in Slovakia in

Germany: Latest working life developments – Q2 2016

The strong stability of industrial relations in the face of controversy over migration policies, the rise of right-wing populist campaigns and responses to the vote on Brexit are the main topics of interest in this article. This country update reports on the latest developments in working life in


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

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

Upcoming publications results (2)

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

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.

June 2024
Data results (4)

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