In early June, representatives of the EU Parliament and member states reached agreement on common standards for the minimum wage. Formal consent from both sides was still lacking. Member States are expected to formally agree in early October. The proposed directive aims to improve minimum wage protection for workers who are entitled to a minimum wage through a statutory minimum wage or collective agreements. Collective bargaining to determine wages should also be promoted. Member States where collective bargaining coverage is less than 80% should have plans to increase the rate.
Member countries must allow “a decent life”.
The planned directive does not oblige member states to introduce statutory minimum wages, nor does it establish a common minimum wage level in the EU. However, member states “must ensure that their national minimum wages allow workers to lead a decent life”, declared the EU Parliament.
According to the EU statistics agency Eurostat, 21 of the 27 EU countries have national legal minimum wages. Minimum wages are only protected by collective agreements in six Member States. After member states have also given their consent, the respective countries have two years to transpose the directive into national law.