you're reading...
Economic and Social Policies, PUBLICATIONS

Minimum wage in the EU [Policy Podcast]

Written by Marie Lecerf,

© Andrey Popov / Adobe Stock

In 2020, most European Union (EU) Member States have a statutory minimum wage (21 of 27), while six others have wage levels determined though collective bargaining. Expressed in euros, monthly minimum wages vary widely across the EU ranging from €312 in Bulgaria to €2 142 in Luxembourg (July 2020). The disparities are significantly smaller when price level differences are eliminated. Expressed in purchasing power standard, the minimum wage ranges from PPS 547 in Latvia to PPS 1 634 in Luxembourg.

The question of setting a minimum wage is one of the most analysed and debated topics in economics. Over recent years and in the context of the economic and social crisis engendered by the Covid‑19 outbreak, the creation of a European minimum wage is increasingly considered as a useful instrument to ensure fair wages and social inclusion.

In November 2017, the EU institutions jointly proclaimed the European Pillar of Social Rights, setting out the European Union’s commitment to fair wages for workers. Since then, the European Commission has shown its willingness to address this issue. In particular, Commission President Ursula von der Leyen stated in her political guidelines that she will propose a legal instrument to ensure that every worker in the Union has a fair minimum wage. Such minimum wages should be set according to national traditions, through collective agreements or legal provisions.

On 14 January 2020, the Commission launched the first phase of consultation with social partners on fair minimum wages for workers in the EU, to gather social partners’ views on the possible direction of EU action. Based on the replies received, the Commission concluded that there is a need for EU action. The second phase of consultation was launched on 3 June 2020; with a deadline of 4 September 2020 for social partners to provide their opinion. A Commission proposal is expected by the end of 2020.

The European Trade Union Confederation welcomed the European Commission’s initiative and called for the Commission to propose a directive. Conversely, employers’ organisations believe wage-setting should be left to social partners at national level. In their view, if the Commission wished to act, only an EU Council recommendation would be acceptable.

The European Parliament has often debated the issue of low income and minimum income over the last decade, advocating a more inclusive economy.


Read the complete briefing on ‘Minimum wage in the EU‘ in the Think Tank pages of the European Parliament.

Listen to policy podcast ‘Minimum wage in the EU’ on YouTube.


Discussion

Trackbacks/Pingbacks

  1. Pingback: Minimum wage in the EU | Vatcompany.net - October 20, 2020

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download the EPRS App

EPRS App on Google Play
EPRS App on App Store
What Europe Does For You
EU Legislation in Progress
Topical Digests
EPRS Podcasts

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 3,409 other followers

RSS Link to Members’ Research Service

Disclaimer and Copyright statement

The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.

For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.

Copyright © European Union, 2014-2019. All rights reserved.

%d bloggers like this: