EU Minimum Wage Agreement

Given the far from rosy economic prospects, as well as galloping inflation, Member States EU set a minimum wage.

This does not mean that it will be the same in all European countries, but the agreement will oblige to ensure a decent level of provision for all workers in Europe. The aim of the new directive is to address this problem by creating an EU regulation aimed at improving the protection of an adequate minimum wage. This is planned to be achieved, taking full account of the traditions and competences of states, as well as the autonomy of social partners, writes bnn-news. The directive does not require Member States to set minimum wages in law, nor does it provide for a European-wide minimum wage across the EU. Nicolas Schmitt, European Commissioner for Employment and Social Rights, explains:

“It changes the whole game. Most importantly, it will help fight domestic poverty and reinforce the idea of ​​a social market economy.”

According to the agreement, as expected, all EU member states will have to set a minimum wage based on the cost of a basket of goods and services, and the median salary. Each European country will also have to set its own fair pay targets and meet them. German MEP Dennis Radtke believes that this will not mean additional costs for businesses in difficult times:

“I understand that many companies are concerned about the current situation. But this directive should not increase such concerns, its impact will be limited.”

However, some countries, such as Denmark and Sweden, are against the directive introduction of a minimum wage. They are opposed to Brussels imposing its principles of production and remuneration on other states, fearing that their well-established system, when collectives agree with the employer on wages and its conditions, will be in jeopardy.

It is not yet known whether a new agreement will be adopted. If this happens, it will enter into force within approximately 2 years.

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