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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 report addresses growing concerns about income inequalities in academic and policy debates by offering a comprehensive study of income inequalities during the years of the Great Recession starting in 2008–2009 (income data relating to 2004–2013). It has the twofold objective of adopting an EU

13 March 2017

In 22 out of 28 EU Member States, a generally applicable statutory minimum wage exists; the level of this minimum wage varies greatly from one country to another. This article provides information on statutory minimum wage levels, how the minimum wage has been determined for 2017 and minimum wage

09 February 2017

Teachers across Europe have been protesting about their working conditions. Pay levels and pay inequalities, working time and workload, recruitment procedures and staffing at schools have been the main focus of social dialogue and collective action. Several of the reported cases are set in the

09 January 2017

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the financial services sector. It is based on the third European Company Survey (ECS). The sector

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the transport sector. It is based on the third European Company Survey (ECS). The sector includes

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the commerce and hospitality sector. It is based on the third European Company Survey (ECS). The

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the construction sector. It is based on the third European Company Survey (ECS). The sector

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the health sector. It is based on the third European Company Survey (ECS). The sector includes all

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the education sector. It is based on the third European Company Survey (ECS). The sector includes

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the public administration and defence sector. It is based on the third European Company Survey (ECS

22 December 2016

Online resources results (888)

Social partners agree three-year national programme

The primary objectives of Partnership 2000 (P2000) are: " the continued development of an efficient modern economy capable of high and sustainable economic and employment growth and operating within the constraints of international competitiveness, ensuring that Irish society becomes more inclusive

Article

Job security agreement at Blue Circle

In January 1997, the cement company, Blue Circle (BCC), and two of Britain's largest trade unions, the Transport and General Workers Union (TGWU) and the General Municipal and Boilermakers Union (GMB), agreed what has been described as a "ground breaking" deal which gives a guarantee of job security

Public sector pay policies

Three independent pay review bodies were created more than 25 years ago in what has been described as an attempt "to remove a range of highly sensitive settlements from the political arena" (P Bassett, /The Times,/ 7 February 1997). They recommended pay increases for doctors and dentists, the most

Low wages in a high-wage economy

Compared to many other western industrialised countries, Germany has the image of being a high-wage economy with a relatively low inequality of incomes and living standards. This is mainly the result of the German system of branch-level central collective bargaining (Flächentarifvertrag), where

Apparent breakdown of Belgian central bargaining

For the first time since 1960, the Belgian social partners have failed to reach an intersectoral pay agreement and have instead accepted government imposition of measures on employment and maximum pay increases. This development runs counter to all traditions of free collective bargaining and the

Bargaining in 1996 - from the Employment Alliance to the sick pay dispute

The Institute for Economics and Social Science (Wirtschafts- und Sozialwissenschaftliches Institut, WSI) has recently published its annual examination of the previous collective bargaining round. It paints a rather mixed picture of 1996, a year in which collective bargaining was overshadowed by

Proposal to exempt long-term unemployed people from legal minimum wage

The Dutch Government wants to allow employers temporary exemptions from the legal minimum wage [1] (WML- wettelijk minimumloon), and to that end, a bill was submitted to Parliament in 1996. The target group consists of long-term unemployed people aged between 20 and 65. The purpose of the bill is to

Metalworking collective agreement signed after nine months of negotiations

On 4 February, following a mediation proposal by the Government, the national metalworking collective agreement was signed. Negotiations had lasted for nine months and were marked by moments of breakdown and conflict which resulted in strikes. The metalworking settlement, which covers some 1.5


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 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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