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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 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 business, administration and other services sector. It is based on the third European Company

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 industry sector. It is based on the third European Company Survey (ECS). The sector includes

22 December 2016

The sixth European Working Conditions Survey (EWCS) builds on the lessons learned from the previous five surveys to paint a wide-ranging picture of Europe at work across countries, occupations, sectors and age groups. EU employment policy priorities aim to boost employment levels, prolong working

17 November 2016

This article summarises the recent developments in collectively agreed pay in the European Union. It discusses the levels at which it is carried out, its coordination and coverage. The wage outcomes are put into the perspective of past collectively agreed wage changes and key institutional variables

19 October 2016

Women’s labour market participation in the European Union has increased over recent decades, passing 70% in 2014. In that year, women comprised almost 46% of the active EU labour market population.

11 October 2016

Many EU Member States have implemented reforms to improve the sustainability of their pension systems. However, the impact of discouraging early retirement and increasing the pension age on effective retirement ages is limited, as many people are unable or unmotivated to work until pension age.

09 September 2016

Well-functioning social dialogue is a key component for the successful design and implementation of reforms needed to increase the competitiveness of Europe’s economies and create more jobs. It balances workers’ and employers’ interests and contributes to both economic competitiveness and social

06 September 2016

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 European Union and Norway.

05 September 2016

The use of supplementary employee reward systems has increased across Europe in recent decades, both in terms of the number of companies using them and the number of employees covered. Supplementary reward systems include performance-related pay, profit-sharing, payment by results and benefits in

01 September 2016

The German national statutory minimum wage for international truck drivers has caused considerable controversy. Some Member States fear it will damage the competitiveness of companies sending drivers to destinations via Germany. However, it is important to find a balance between promoting the free

16 June 2016

Online resources results (888)
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Minimum wages in 2022: Bigger hikes this time around

The first overview of minimum wage setting for 2022 shows that, while some negotiations are still ongoing, virtually all EU Member States have increased their nominal statutory rates. Compared to last year, when most countries settled for cautious increases against a background of deep uncertainty

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Impact of the COVID-19 crisis on wages and wage setting

The COVID-19 crisis had a significant impact on wages and wage setting across Europe in 2020. The uncertain economic scenario, together with the difficulties inherent in online bargaining, led to a general postponement of collective agreements to 2021, especially at company level. Real wages

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Wages in long-term care and other social services 21% below average

New data from the EU Structure of Earnings Survey (SES) show that, on average, EU Member States paid their social services workers 21% less than the average national hourly earnings in 2018: this compares with 19% less than the average in 2010 and 20% less in 2014. The majority of social services

Living, working and COVID-19: Impact on gender equality 11 March 2021, European Economic and Social Committee (EESC) virtual meeting Presentation by Maria Jepsen, Acting Executive Director, Eurofound

22 March 2021
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Member States are dawdling on gender pay transparency

The gender pay gap in gross hourly earnings in the EU was 14.8% in 2018. To help combat discriminatory pay practices by employers, the European Commission recommended in 2014 the introduction of pay transparency measures in all Member States. But more than half still have not implemented any such

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EU seeks views on the minimum wage

Against a background of growing polarisation, it is worth remembering the model of social dialogue that allows us each year to debate and reach thousands of agreements that start from different and distant positions and interests.

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To have or have not: A statutory minimum wage

​​​​​​​Cyprus and Italy are currently considering the introduction of a universal minimum wage floor by law. With this move, they would be joining 22 other EU Member States that already have one in place. In the remaining Member States – Austria, Denmark, Finland and Sweden – and in Norway, too

Latvia: latest working life developments Q2 2018

A new agreement on overtime pay, a warning about the power balance between employers and employees, an increase in wages and a workforce deficit are the main topics of interest in this article. This country update reports on the latest developments in working life in Latvia in the second quarter of

United Kingdom: latest working life developments Q2 2018

The social partners’ joint statement on the risk of a no-deal Brexit risk, launch of the first labour market enforcement strategy and a record low for workers’ strikes are the main topics of interest in this article. This country update reports on the latest developments in working life in the UK 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 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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