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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 examines social inequalities in the distribution of freedoms and opportunities among individuals and population subgroups in Europe. Using data from the European Quality of Life Survey (EQLS), the report builds up an evidence base on social inequalities in four critical areas of life

03 December 2013

This policy brief highlights findings on a specific topic from Eurofound’s European Quality of Life Survey (EQLS) that is of particular interest from a policy perspective. It brings results of the analysis of these data together with evidence from other Eurofound projects to formulate a number of

08 November 2013

Despite much legislative progress in gender equality over the past 40 years, there are still gender gaps across many aspects of the labour market. Inequalities are still evident in areas such as access to the labour market, employment patterns and associated working conditions. This report explores

29 October 2013

In recent years, practices such as outsourcing and contracting-out have increasingly blurred the boundaries between dependent employment and self-employment. A new group of workers has emerged, which comprises workers who are formally ‘self-employed’, but present some characteristics of employees

29 September 2013

EIRO’s annual analysis of collectively agreed pay for 2012 finds that although average nominal agreed increases were slightly greater than in 2011 in many countries, the rise in prices diminished people’s purchasing power. In real terms, only a handful of countries had positive collective pay

09 July 2013

With the average age of the population rising, people aged 55–64 make up an increasing share of workers in Europe. This demographic shift, as well as ongoing threats to the sustainability of national welfare and pension systems, has increased pressure for reforms to encourage longer careers. This

29 April 2013

This paper looks at wages from two different angles: from the perspective of individual employees, discussed in conjunction with their working conditions, and from the perspective of the industrial relations system. After a brief overview of EU-level policy developments with a potential impact on

29 January 2013

This annual review describes the developments in industrial relations and working conditions in 2011 in the EU Member States and Norway, at both national and EU level, with a focus on the economic situation and responses to it. The report describes the current economic situation in EU Member States

10 December 2012

What determines life satisfaction and happiness? How do we value our social situation and immediate surroundings? How has this changed with the economic crisis? For the third wave of the European Quality of Life survey, 35,500 Europeans in all EU Member States were interviewed, in an effort to gain

27 November 2012

It is increasingly common for workers in the EU to take up paid work after retirement. This trend adds an important dimension to the current discourse on extending working lives. Facilitating work after retirement for those who want to work can contribute to sustainable pension systems. This study

14 November 2012

Online resources results (888)

Romania: New law aims to reduce pay inequality in the public sector

New government legislation to reduce financial inequalities in the public sector will see workers receive considerable wage increases, the introduction of paid overtime and a reduction in the wage gap. However, some employer organisations fear such legislation could see an exodus of workers from the

Slovenia: Latest working life developments – Q2 2017

New apprenticeship legislation, an ombudsman’s report on unpaid wages and posted workers, failure of the ‘mini-labour law reform’ and the resulting amendments to a range of labour legislation are the main topics of interest in this article. This country update reports on the latest developments in

Romania: Latest working life developments – Q2 2017

Strikes on the railways and in manufacturing, protests over public sector pay, and consultations on changes to social dialogue and labour legislation are the main topics of interest in this article. This country update reports on the latest developments in working life in Romania in the second

United Kingdom: Latest working life developments – Q2 2017

Mounting pressure to end the 1% pay cap on public sector workers, falling union membership, the ‘gig economy’, and a strike at British Airways are the main topics of interest in this article. This country update reports on the latest developments in working life in the United Kingdom in the second

Slovakia: Latest working life developments – Q2 2017

A strike at Volkswagen Slovakia over pay negotiations and the introduction of stricter conditions for the support given to unemployed workers are the main topics of interest in this article. This country update reports on the latest developments in working life in Slovakia in the second quarter of

Denmark: Private sector collective agreements concluded – despite difficulties

Collective agreements concluded in March in the private sector provided for small wage increases and improvements to education and training. However, many union members voted against an agreement about systematic overtime and measures to avoid social dumping. The deals follow the pace-setting

Spain: Milestone agreement in retail sector

An agreement between social partners in the Spanish retail sector will govern working and employment conditions for the next three years. About 260,000 employees are expected to benefit from this agreement, which is likely to set the standards for other sector agreements due to be negotiated during

Latvia: Impact of austerity measures on the public health sector

Workers in Latvia’s public healthcare sector have protested about the less favourable working conditions in their sector, not just low pay, but also the level of shift work, overtime work and work during public holidays.

Ireland: Latest working life developments – Q1 2017

Agreement on an earlier pay rise for public service staff, strikes at Tesco and Bus Éireann, and proposals on minimum pay and working hours for security guards are the main topics of interest in this article. This country update reports on the latest developments in working life in Ireland in the

Slovenia: Doctors' agreement could destabilise public sector salary system

After six months of tough negotiations and industrial action by doctors, the government and the doctors’ trade union finally signed a collective agreement in March 2017. Doctors achieved most of their demands, which related to working standards as well as wages. The annual cost of the agreement has


Blogs results (22)
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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
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As one of their ‘100 days in office’ initiatives, the new European Commission intends to propose an initiative for an EU minimum wage. The aim is that by 2024 every worker in the EU should earn a fair and adequate wage, no matter where they live.

15 January 2020
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The Socialist-led Spanish government that emerged last summer had, by the end of 2018, approved a hike in the statutory minimum wage. This was agreed with the left-wing Podemos party as part of an attempt to secure the parliamentary support needed for passing the proposed 2019 budget – although

17 July 2019
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Seniority entitlements have largely been on the decline since the 1990s, and have been gradually phased-out from legislation in Europe, as well as in collective agreements. However, it would be premature to dismiss seniority-based entitlements as a thing of the past, as they remain in force across

17 April 2019
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One year after Germany’s introduction of the Entgelttransparenzgesetz (Wage Transparency Act), the results are somewhat underwhelming. This law is Germany’s take on the European Commission’s recommendation on introducing pay transparency measures to combat the gender pay gap.

4 February 2019
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Wages grew and wage inequality fell in most EU countries in 2015. Germany is not one of the countries where wages rose most, but it did have the largest reduction of wage inequality. Our analysis shows that the German minimum wage policy introduced in 2015 strongly lifted the wages of the lowest

14 June 2018
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Measures to promote gender pay transparency haven’t been delivered yet in half of Europe – making EU level legislative action to speed up implementation an option. In this blog, originally posted in Social Europe, Christine Aumayr-Pintar details what we know about the measures from countries that

28 February 2018
Pay inequalities come back into focus in post-crisis Europe

The ability to make ends meet is a vital issue for many Europeans and an important priority for European policymakers. In the immediate aftermath of the 2008 economic crisis the initial focus was to mitigate and reverse job loss, particularly in the countries most affected. With employment back to

3 November 2017
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The Great Recession depressed real income levels across European countries. But the impact was very unequal across countries and income groups. Countries in the European periphery have been more affected than those in the core, halting the process of income convergence between European countries

23 June 2017
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EU-wide income inequality declined notably prior to 2008, driven by a strong process of income convergence between European countries. The Great Recession broke this trend. After 2008, income convergence has been sluggish, while inequality within many countries has increased significantly.

21 March 2017

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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