Directive on adequate minimum wages

Briefing 26-10-2022

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 wage levels. Interinstitutional negotiations concluded on 6 June 2022 with a provisional agreement. It was approved by the European Parliament in plenary by a large majority on 14 September 2022 and the Council formally adopted it on 4 October 2022. Member States have 2 years – until 15 November 2024 – to ensure national measures comply with the new rules. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.