To assess adequacy, EU countries can set a “basket of goods and services” at real prices. Member States may also apply benchmarks that are widely used internationally, such as 60% of gross median salary and 50% of gross average salary.
On Monday night, the Parliament and Council negotiators agree on EU rules for setting adequate minimum wages, as provided by national law or collective agreements. The new legislation will apply for all EU workers who have a contract or employment relationship. EU countries where the minimum wage is protected exclusively through collective agreements will not be required to adopt it, nor to make these conventions universally applicable.
Adequate salaries
THE agreement provides that tMember States should assess whether their existing legal minimum wages (ie the lowest salary allowed) are sufficient to ensure a decent standard of living, taking into account their own socio-economic conditions, purchasing power or long-term national productivity levels and developments.
To assess adequacy, EU countries can specify one “Basket of goods and services” in real prices. Member States may also apply benchmark values that are widely used internationally, such as 60% of gross median salary and 50% of gross average salary.
Minimum wage deductions or variations should be non-discriminatory, proportionate and have a legitimate aim, such as recovering unduly paid amounts or withholdings ordered by a judicial or administrative authority.
Collective bargaining
The EU negotiators agreed that EU countries should strengthen sectoral and cross-sectoral collective bargaining as an essential factor in protecting workers by providing them with a minimum wage. Member States in which less than 80% of the workforce is protected by a collective agreement should draw up an action plan to gradually increase this coverage. In order to design the best strategy for this purpose, they should involve the social partners and inform the Commission of the measures taken and make the plan public.
Controls and right of appeal
The agreed text also provides the obligation for EU countries to establish a system for enforcing the rules, which will include reliable monitoring, inspections and on-site inspections, to ensure compliance and deal with abusive subcontracting, false self-employment, unregistered overtime or increased workload.
National authorities should ensure that the right to appeal of employees whose rights have been violated. Authorities must also take the necessary measures to protect workers and their trade union representatives.
Next steps
The interim political agreement negotiated by the relevant MEPs on behalf of the EP will now have to be approved first by Parliament’s Committee on Employment and Social Affairs, before it can be put to a vote in plenary. The Council must also approve the agreement.
Statements
After reaching an agreement, the co-rapporteur Dennis Radtke (EPP, Germany) stated: “With the minimum wage agreement, we are writing a socio-political history in Europe. “For the first time, EU legislation will directly contribute to ensuring fairer and better pay for workers.”
The co-rapporteur Agnes Jongerius (Socialists, The Netherlands) added: “With this European law, we are reducing wage inequalities and pushing for higher wages for Europe’s low-wage workers. Everyone should be able to buy new clothes, join a sports team or go on holiday as they deserve. In short, they should have a decent standard of living. “
THE Dragoş Pîslaru (Renew, Romania), Chairman of the Committee on Employment and Social Affairs, concluded: “The directive creates new opportunities for European citizens to escape so-called worker poverty and gain access to social dialogue. It creates transparent and appropriate procedures, as well as joint implementation measures at EU level, while balancing national specificities. “
Elena Papadimitriou
In the EU, 21 of the 27 countries have legislation that sets the minimum wage, while in the other six (Austria, Cyprus, Denmark, Finland, Italy and Sweden) wage levels are set through collective bargaining. Expressed in euros, the monthly minimum wages vary considerably between EU countries, ranging from € 332 in Bulgaria to € 2,202 in Luxembourg (Eurostat data for 2021).
