Members' Research Service By / June 15, 2022

Directive on adequate minimum wages [EU Legislation in Progress]

In November 2017, the EU institutions jointly proclaimed the European pillar of social rights, setting out the EU’s commitment to fair wages for workers.

© Kawee / Adobe Stock

Written by Marketa Pape (1st edition).

Wage policy in the EU is a patchwork of different national traditions and legal frameworks. As a result, minimum wage levels diverge considerably, and leave many workers unprotected. While setting minimum wages is the competence of EU Member States, the EU has a supporting and complementary role.

In October 2020, the European Commission proposed a directive seeking to improve the adequacy and increase the coverage of minimum wages, while also strengthening collective bargaining as the main instrument to ensure fair wages and working conditions. It is the first time that the Commission has initiated legislative action on minimum wage protection, leaving Member States to define the specific minimum wagelevels. The ensuing debate focused on how far-reaching and binding the concrete EU requirements for national minimum wages should be.

The European Parliament adopted its position in November 2021, and the Council in December 2021. Interinstitutional negotiations concluded on 6 June 2022 with a provisional agreement that must now be confirmed by the Parliament and Council.

Version

Proposal for a directive of the European Parliament and of the Council on adequate minimum wages in the European Union
Committee responsible:Employment and Social Affairs (EMPL)COM(2020) 682
28.10.2020
Rapporteurs:Dennis Radtke (EPP, Germany)
Agnes Jongerius (S&D, Netherlands)
2020/0310(COD)
Shadow rapporteurs:Monica Semedo (Renew, Luxembourg)
Mounir Satouri (Greens/EFA, France)
Dominique Bilde (ID, France)
Anna Zalewska (ECR, Poland)
Özlem Demirel (The Left, Germany)
Ordinary legislative
procedure (COD) (Parliament
and Council on equal
footing – formerly ‘co-decision’)
Next steps expected: First-reading vote in plenary


Related Articles

Be the first to write a comment.

Leave a Reply