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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)

Seniority systems – schemes that allot improving employment rights or benefits to employees as their length of employment increases – have not been widely studied. This report provides the first comprehensive study comparing the design and spread of seniority-based entitlements (SBEs) in Europe and

17 April 2019

This short report examines the projected structural change for the wage and task structure of employment in EU Member States, up to 2030, using the framework developed in Eurofound’s European Jobs Monitor.

17 December 2018

A living wage has been defined as a measure of income that allows an employee a basic but socially acceptable standard of living. In recent decades, living wage initiatives have emerged in a small number of mainly English-speaking countries, including the UK and Ireland. These initiatives have

30 November 2018

This report examines the development of collectively agreed pay in conjunction with the development of actual compensation (‘wages’) and labour productivity in real terms. It applies both a longer-term perspective (the early 2000s to 2017) and a short-term perspective, with a focus on the outcomes

10 October 2018

Eurofound has a considerable body of research findings looking at how salary levels are set in EU Member States. This report looks at the mechanisms used to determine statutory minimum wages, the use of variable pay schemes in companies in the EU, and national systems of supplementary pay.

27 March 2018
Publication
Customised report

In light of the limited action in many Member States to introduce or review gender pay transparency instruments as recommended, in November 2017 the European Commission announced the possible need for further targeted measures at EU level. This report reviews experiences in four Member States –

07 February 2018

The term ‘minimum wage’ refers to the various legal restrictions governing the lowest rate payable by employers to workers, regulated by formal laws or statutes. This report provides information on statutory minimum wages that are generally applicable in a country and not limited to specific sectors

06 February 2018

Developments in Working Life in Europe is part of a series of annual reviews published by Eurofound and provides an overview of the latest developments in industrial relations and working conditions across the EU and Norway.

25 September 2017

This article discusses developments in collectively agreed wages in the European Union in 2016, putting them into the perspective of developments over the past 15 years. The tendency for growth in both nominal and real collectively agreed wages from 2015 continued. In two countries (Belgium and

25 July 2017

This EurWORK topical update summarises the views of European and national-level stakeholders on recent debates on implementing the principle of ‘equal pay’ for posted workers. Directive 96/71/EC foresees that posted workers must be granted the minimum standards of employment conditions applicable in

18 July 2017

Online resources results (888)

Labour relations in cooperatives: the working partner issue

A long-running debate over the position of "working partners" in cooperatives - partners who also work in the organisation - has caused a dispute between Italian trade unions and cooperative associations, which came to a head when negotiations broke down in July 1997. We review the controversy and

Collective bargaining in 1996

In June 1997, the tripartite National Collective Bargaining Commission examined the Ministry of Labour's 1996 annual report on collective bargaining in France. The study indicates progress in bargaining in a context marked by low growth in GDP, control of inflation and relative lethargy in domestic

National pay deal faces first real test in over a decade

The revelation in late June 1997 that Ireland's largest union, the Services, Industrial, Professional and Technical Union (SIPTU), is aiming to secure an additional 2% in either pay or other benefits, on top of the combined basic and "local" increases of 9.25% in the three-year national /Partnership

Civil service law reform comes into force on 1 July 1997

According to constitutional law, the special category of employees known as Beamte, or career public servants [1], are individuals who are appointed by the state, a municipality or other legal persons under public law to the career public service relationship [2] by sovereign act. They have the

Article

New company agreement signed at Volkswagen AG

On 24 June 1997 the recent collective bargaining round at the leading German motor company Volkswagen (VW) ended with the conclusion of a new company agreement. Volkswagen is one of the very few large German corporations in the metalworking sector which, traditionally, are not covered by branch

New Government faced with differing priorities from unions and employers

One of the first acts by the new French Prime Minister following his election in June 1997 was to consult with employers and unions prior to announcing his legislative programme. This move was greeted favourably by both employers and trade unions, though their aims are quite different. A national

Civil service strikes

The high priority currently given to budget consolidation has been translated by the Austrian Government into, among other measures, a need to limit increases in civil service costs - currently ATS 215 billion per year - to no more than 1.3% annually. The Government is trying to achieve this aim by

The 1997 collective bargaining round in the German construction industry

The 1997 collective bargaining round for the 1.3 million employees in the German construction industry started on 27 February. In contrast to most branch-level bargaining, which takes place at regional level, negotiations in the construction industry are traditionally held at national level. The

Two more women lose sex discrimination case on pay in Sweden

On 28 May 1997, the Labour Court ruled that the municipality of Mjölby in southern Sweden did not discriminate against two women teachers by paying them SEK 1,119 less per month than their male colleague was paid for the same job (AD 1997:68). The judgment is the latest of several setbacks for women

A Copernican U-turn in German collective bargaining?

On 3 June 1997, after three months of negotiations, the chemical workers' union, IG Chemie, and the sectoral employers' association, Bundesarbeitgeberverband Chemie (BAVC), agreed on the introduction of a new "opening clause" in the national pay framework agreement (Bundesentgelttarifvertrag) which


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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