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How to ensure adequate minimum wages in an age of inflation

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 among minimum wage earners.

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Minimum wages: Council and European Parliament reach provisional agreement on new EU law

The presidency of the Council and European Parliament negotiators reached a provisional political agreement on the draft directive on adequate minimum wages in the EU. The new law – once finally adopted – will promote the adequacy of statutory minimum wages and thus help to achieve decent working and living conditions for European employees.

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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 caused by the pandemic, growth in statutory rates for 2022 was stronger, reflecting an easing of the situation. This was especially the case in central and eastern European countries, where some increases were in double digits.

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Council agrees on mandate for negotiations on a EU framework on adequate minimum wages

The Council today (6/12/2021) agreed its position on a Commission proposal for an EU law on adequate minimum wages in the EU. Fair wages that provide for a decent standard of living are one of the principles of the European Pillar of Social Rights. To improve working and living conditions, this draft law establishes a framework to promote adequate levels of statutory minimum wages, to promote collective bargaining on wage setting and to improve the effective access to minimum wage protection of those workers who are entitled to a minimum wage.

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Report of Expert Group on transposition of Directive (EU)2019/1152 published

A new report by the Expert Group on the transposition of Directive on transparent and predictable working conditions has been published.

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As Member States take different approaches to regulating telework, will the EU bring them into line?

The massive and rapid adoption of telework in 2020 in response to the COVID-19 lockdowns exposed gaps in the legislation governing telework arrangements across the EU Member States. In some cases, there was no regulation in place; in others, it was too restrictive. Governments scrambled to put temporary measures in place to cover the emergency situation and the urgent need to enable workers to work from home. Now that the pandemic is receding and wholesale telework seems to be here to stay, governments are faced with the need to properly regulate such arrangements.

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Minimum wages in 2021: Annual review

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This report summarises how minimum wage rates for 2021 were set during 2020 – the year marked by the COVID-19 pandemic. It reviews the difficulties faced by national decision-makers and how they reacted to the challenges of the economic and social fall-out of the pandemic when making decisions regarding the minimum wage. It maps the extent to which minimum wages were referred to in COVID-19-related support measures. It discusses advances made on the EU initiative on adequate minimum wages and maps the reactions of the EU-level social partners and national decision-makers.

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EESC Employers' Group lodges a counter opinion on adequate minimum wages

The Employers' Group in the European Economic and Social Committee massively voted against the EESC opinion on the European Commission's proposal on "adequate minimum wages in the European Union" and tabled a counter-opinion, which will be appended to the EESC opinion as it has collected more than a third of the votes.

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Fair Minimum Wages for All: EESC Workers' Group Webinar

21 May 2021 10.00 am CET - EESC Workers' Group Webinar

#EUMinimumWages

The European Commission's proposal for a directive on adequate minimum wages has sparked controversy among member states and social partners alike across Europe.

The proposal develops the principles of the European Pillar of Social Rights, aiming to improve the working and living conditions of millions of workers in the EU.

Today one in five Europeans are at risk of poverty or social exclusion, while 10% of workers are considered working poor.

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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 maintained a positive trend during 2020 in most EU countries, with just modest increases, while higher increases were observed in the public sector.

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