Directive (EU) 2022/2041 on adequate minimum wages in the European Union

Summary:

Directive (EU) 2022/2041 - formally adopted by the co-legislators on 19 October 2022 - establishing a framework to improve the adequacy of minimum wages and the access of workers to minimum wage protection in the European Union (EU).

Further information:

This Directive establishes a framework for adequacy of statutory minimum wages with the aim of achieving decent living and working condition, for promoting collective bargaining on wage-setting, and for enhancing access of workers to rights to minimum wage protection where provided for in national law and/or collective agreements.

The Act originated in November 2017, when the European Union (EU) proclaimed the European Pillar of Social Rights (EPSR). On of the items under the EPSR calls for adequate minimum wages as well as for transparent and predictable wage setting to be put in place, according to national practices and respecting the autonomy of social partners. The Strategic Agenda for 2019-2024 called for the implementation of the EPSR at EU and national level. The Political Guidelines for the mandate 2019-2024 of the European Commission included the publication of an Action Plan aimed at implementing the EPSR, which was later released in January 2020. At the State of the Union address in September 2020, the President of the Commission again pledged to present a legal instrument to ensure that workers in the EU have a fair minimum wage.

The plenary of the European Parliament adopted a negotiating position on 25 November 2021. The Council of the European Union adopted a general approach on 6 December. An informal agreement between the co-legislators on a compromise text for this file was reached on 7 June 2022. This was formally endorsed by the Parliament on 14 September, and by the Council on 4 October. The Act was signed by the co-legislators on 19 October 2022, and published in the Official Journal on 25 October 2022.

Official

EUR-LEX: COM(2020)682: Proposal for a Directive on adequate minimum wages in the European Union https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:682:FIN

EUR-Lex: SWD(2020)245: Staff Working Document accompanying the Proposal - Impact Assessment https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:245:FIN

EUR-Lex: SWD(2020)246: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:246:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on adequate minimum wages in the European Union (2020/0310(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2020/0310(COD)

European Parliament: Legislative Train Schedule: Fair minimum wages for workers in the European Union https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-fair-minimum-wages/05-2021

European Commission: DG Employment, Social Affairs & Inclusion: Adequate minimum wages in the EU https://ec.europa.eu/social/main.jsp?catId=1539&langId=en

General Secretariat of the Council: Policies: Adequate minimum wages in the EU https://www.consilium.europa.eu/en/policies/adequate-minimum-wages/

European Commission: Press Release, 28/10/2020: Advancing the EU social market economy: adequate minimum wages for workers across Member States https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1968

European Commission: Questions and answers: Adequate minimum wages (28 October 2020) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_1967

European Commission: Opening remarks by Executive Vice-President Dombrovskis at the read-out of the College meeting and press conference on adequate minimum wages (28 October 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_2002

European Commission: Opening remarks by Commissioner Schmit at the read-out of the College meeting and press conference on adequate minimum wages (28 October 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_2003

PES: News, 28/10/2020: PES welcomes historic EU minimum wages proposal https://www.pes.eu/de/news-events/news/detail/PES-welcomes-historic-EU-minimum-wages-proposal/

EPP Group: Newsroom, 28/10/2020: For a decent and fair living in Europe https://www.eppgroup.eu/newsroom/news/for-a-decent-and-fair-living-in-europe

G/EFA Group: Press Release, 28/10/2020: Commission Proposal welcome but falls short on ambition to fight poverty & inequality https://www.greens-efa.eu/en/article/press/commission-proposal-welcome-but-falls-short-on-ambition-to-fight-poverty-inequality/

Swedish Government: Press Release, 29/10/2020: European Commission wants to protect the Swedish model https://www.government.se/press-releases/2020/10/european-commission-wants-to-protect-the-swedish-model/

Finnish Ministry of Economic Affairs and Employment: Press Release, 10/12/2020: Finland supports the aims of EU minimum wage initiative to combat in-work poverty https://tem.fi/en/-/finland-supports-the-aims-of-eu-minimum-wage-initiative-to-combat-in-work-poverty

EFTA: News, 29/01/2021: The EEA EFTA Forum of local and regional authorities discuss Green Deal and minimum wages https://www.efta.int/EEA/news/EEA-EFTA-Forum-local-and-regional-authorities-discuss-Green-Deal-and-minimum-wages-522126

European Parliament: Press Release, 11/02/2021: Statement by the co-rapporteurs on the proposal for a directive on adequate minimum wages https://www.europarl.europa.eu/news/en/press-room/20210211IPR97616/

Swedish Government: Press Release, 19/02/2021: Sweden gathers Member States to protest against European minimum wages https://www.government.se/press-releases/2021/02/sweden-gathers-member-states-to-protest-against-european-minimum-wages/

Portuguese Council Presidency: News, 18/03/2021: Portugal aims to safely guide the proposal for appropriate minimum wages to a successful conclusion https://www.2021portugal.eu/en/porto-social-summit/news/portugal-aims-to-safely-guide-the-proposal-for-appropriate-minimum-wages-to-a-successful-conclusion/

S&D Group: Newsroom, 22/04/2021: It’s time for respect and fair minimum wages for all European workers https://www.socialistsanddemocrats.eu/newsroom/its-time-respect-and-fair-minimum-wages-all-european-workers

European Parliament: Headlines, 23/08/2021: Parliament’s action for fair minimum wages in the EU https://www.europarl.europa.eu/news/en/headlines/society/20210628STO07263/

Swedish Government: Article, 26/08/2021: Minimum wages discussed during French ministerial visit https://www.government.se/articles/2021/08/minimum-wages-discussed-during-french-ministerial-visit/

European Parliament: Press Release, 11/11/2021: New rules for fair minimum wages in the EU https://www.europarl.europa.eu/news/en/press-room/20211107IPR16808/

European Parliament: Press Release, 24/11/2021: Minimum wage: green light to start negotiations with Council https://www.europarl.europa.eu/news/en/press-room/20211119IPR17718/

Finnish Government: Press Release, 03/12/2021: Ministers to discuss minimum wages, pay transparency and the COVID-19 pandemic in Brussels https://valtioneuvosto.fi/en/-//1410877/ministers-to-discuss-minimum-wages-pay-transparency-and-the-covid-19-pandemic-in-brussels

Council of the European Union: Press Release, 06/12/2021: Council agrees on mandate for negotiations on a EU framework on adequate minimum wages https://www.consilium.europa.eu/en/press/press-releases/2021/12/06/council-agrees-on-mandate-for-negotiations-on-a-eu-framework-on-adequate-minimum-wages/

Spanish Government: News, 06/12/2021: Spain leads Europe in advancing the minimum wage directive https://www.lamoncloa.gob.es/lang/en/gobierno/news/Paginas/2021/20211206_epsco.aspx

European Commission: Press Release, 07/06/2022: Commission welcomes political agreement on adequate minimum wages for workers in the EU https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3441

Council of the European Union: Press Release, 07/06/2022: Minimum wages: Council and European Parliament reach provisional agreement on new EU law https://www.consilium.europa.eu/en/press/press-releases/2022/06/07/minimum-wages-council-and-european-parliament-reach-provisional-agreement-on-new-eu-law/

European Parliament: Press Release, 07/06/2022: Deal reached on new rules for adequate minimum wages in the EU https://www.europarl.europa.eu/news/pt/press-room/20220603IPR32188/

Renew Europe EP Group: News, 07/06/2022: Minimum wages in the EU: Deal ensures progress in reducing in-work poverty https://www.reneweuropegroup.eu/news/2022-06-07/minimum-wages-in-the-eu-deal-ensures-progress-in-reducing-in-work-poverty

S&D EP Group: Newsroom, 07/06/2022: “Work will pay again,” says S&D MEP Agnes Jongerius on last night’s deal on minimum wages with French EU presidency https://www.socialistsanddemocrats.eu/newsroom/work-will-pay-again-says-sd-mep-agnes-jongerius-last-nights-deal-minimum-wages-french-eu

S&D EP Group: Newsroom, 16/06/2022: Victory for European workers as EU governments back S&D proposal for adequate minimum wages https://www.socialistsanddemocrats.eu/newsroom/victory-european-workers-eu-governments-back-sd-proposal-adequate-minimum-wages

European Parliament: Press Release, 14/09/2022: Parliament adopts new rules on adequate minimum wages for all workers in the EU https://www.europarl.europa.eu/news/en/press-room/20220909IPR40138/

European Commission: DG Employment, Social Affairs & Inclusion: News, 04/10/2022: Commission welcomes adoption of Directive on adequate minimum wages https://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=10422&furtherNews=yes

Council of the European Union: Press Release, 04/10/2022: Council adopts EU law on adequate minimum wages https://www.consilium.europa.eu/en/press/press-releases/2022/10/04/council-adopts-eu-law-on-adequate-minimum-wages/

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News

Reuters, 28/10/2020: EU Commission proposes rules for adequate minimum wage in EU https://www.reuters.com/article/idUKKBN27D1WN

EurActiv, 28/10/2020: Commission makes it clear: Same minimum wage for all EU countries is impossible https://www.euractiv.com/section/economy-jobs/news/commission-makes-it-clear-same-minimum-wage-for-all-eu-countries-is-impossible/

Euronews, 28/10/2020: Sweden opposes Brussels proposal for EU minimum wage guarantee https://www.euronews.com/2020/10/28/sweden-opposes-brussels-proposal-for-eu-minimum-wage-guarantee

Bloomberg, 28/10/2020: Denmark Prepares to Fight EU’s Proposal for Minimum Wage https://www.bloomberg.com/news/articles/2020-10-28/denmark-prepares-to-fight-eu-s-proposal-for-minimum-wage

EurActiv, 30/10/2020: No need for a statutory minimum wage, says Finland https://www.euractiv.com/section/politics/short_news/no-need-for-a-statutory-minimum-wage-says-finland/

Times of Malta, 29/01/2021: Malta joins call on EU for national sovereignty over minimum wage https://timesofmalta.com/articles/view/malta-joins-call-on-eu-for-national-sovereignty-over-minimum-wage.848226

The Irish Times, 07/02/2021: Coalition concern over EU law on minimum wage and worker rights https://www.irishtimes.com/news/ireland/irish-news/coalition-concern-over-eu-law-on-minimum-wage-and-worker-rights-1.4478496

RTÉ News, 18/02/2021: Government accused of resisting EU changes to minimum wages https://www.rte.ie/news/business/2021/0218/1197911-minimum-wage/

Malta Today, 03/03/2021: Maltese MEPs nuanced over proposed law for an EU minimum wage https://www.maltatoday.com.mt/news/ewropej/108006/maltese_meps_nuanced_over_proposed_law_for_an_eu_minimum_wage

Bloomberg, 28/03/2021: EU Risks Alienating Denmark as Wage Dispute Provokes Disbelief https://www.bloomberg.com/news/articles/2021-03-28/eu-risks-alienating-denmark-as-wage-dispute-provokes-disbelief

EurActiv, 10/05/2021: France ready to pick up the baton on EU minimum wage proposal https://www.euractiv.com/section/economy-jobs/news/france-ready-to-pick-up-the-baton-on-eu-minimum-wage-proposal/

The Local (Denmark), 18/11/2021: Danish parliament rejects EU minimum wage directive https://www.thelocal.dk/20211118/danish-parliament-rejects-eu-minimum-wage-directive/

EurActiv, 19/11/2021: Danish and Swedish socialists fight against minimum wage directive https://www.euractiv.com/section/economy-jobs/news/danish-and-swedish-socialists-fight-against-minimum-wage-directive/

EurActiv, 07/12/2021: EU Council agrees negotiating position on minimum wage directive https://www.euractiv.com/section/economy-jobs/news/eu-council-agrees-negotiating-position-on-minimum-wage-directive/

EUObserver, 07/12/2021: Denmark and Hungary oppose EU rules on minimum wages https://euobserver.com/rule-of-law/153735

Nordic Labour Journal: News, 25/04/2022: Nordics split as EU minimum wage proposal delayed http://www.nordiclabourjournal.org/nyheter/news-2022/article.2022-04-20.2480280789

EurActiv, 07/06/2022: EU Parliament and member state negotiators agree on minimum wage directive https://www.euractiv.com/section/economy-jobs/news/eu-parliament-and-member-state-negotiators-agree-on-minimum-wage-directive/

Euronews, 07/06/2022: Agreement on new EU minimum wage law reached in Brussels https://www.euronews.com/my-europe/2022/06/07/agreement-on-new-eu-minimum-wage-law-reached-in-brussels

The Irish Times, 07/06/2022: Provisional agreement reached on new EU minimum wage rules https://www.irishtimes.com/ireland/social-affairs/2022/06/07/provisional-agreement-reached-on-new-eu-minimum-wage-rules/

The Local (Sweden), 07/06/2022: EU minimum wage law passes despite criticism from Sweden and Denmark https://www.thelocal.se/20220607/eu-minimum-wage-law-passes-despite-criticism-from-sweden-and-denmark/

Times of Malta, 07/06/2022: Sweden, Denmark baulk at new EU minimum wage rules https://timesofmalta.com/articles/view/sweden-denmark-baulk-at-new-eu-minimum-wage-rules.960266

BBC News, 08/06/2022: EU deal links minimum wage to decent standard of living https://www.bbc.co.uk/news/world-europe-61719554

Le Monde, 08/06/2022: European Union finds agreement on minimum wage directive https://www.lemonde.fr/en/economy/article/2022/06/08/european-union-finds-agreement-on-minimum-wage-directive_5986059_19.html

LRT News, 09/06/2022: New EU law may force Lithuania to up minimum wage https://www.lrt.lt/en/news-in-english/19/1715509/new-eu-law-may-force-lithuania-to-up-minimum-wage

Euronews, 13/09/2022: European lawmakers expected to approve EU-wide minimum wage for workers https://www.euronews.com/my-europe/2022/09/13/european-lawmakers-expected-to-approve-eu-wide-minimum-wage-for-workers

Associated Press (AP News), 14/09/2022: EU Parliament adopts new bloc-wide rules on minimum wages https://apnews.com/article/minimum-wage-european-union-government-and-politics-87d6afc9648ad12ce71ce7a35617478d

EurActiv, 14/09/2022: EU Parliament approves Minimum Wage Directive https://www.euractiv.com/section/economy-jobs/news/eu-parliament-approves-minimum-wage-directive/

Delano, 15/09/2022: EU approves directive on minimum wages https://delano.lu/article/eu-approves-directive-on-minim

EurActiv, 04/10/2022: EU minimum wage directive gets final stamp of approval https://www.euractiv.com/section/economy-jobs/news/eu-minimum-wage-directive-gets-final-stamp-of-approval/

Times of Malta, 07/10/2022: EU action on minimum wages and social benefits https://timesofmalta.com/articles/view/eu-action-minimum-wages-social-benefits.985679

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Commentary and Analysis

Confederation of Finnish Industries: News, 29/10/2020: The Commission’s minimum wage proposal goes beyond the EU’s competence https://ek.fi/en/current/news/the-commissions-minimum-wage-proposal-goes-beyond-the-eus-competence/

ETUI: News, 02/11/2020: Minimum wage directive, not the silver bullet for all workers in the EU https://www.etui.org/news/minimum-wage-directive-not-silver-bullet-all-workers-eu

EU Law Analysis, 05/11/2020: The proposal on adequate minimum wages in the European Union: Striving for fairness, less so adequacy http://eulawanalysis.blogspot.com/2020/11/the-proposal-on-adequate-minimum-wages.html

Social Europe, 10/11/2020: Minimum-wage directive: yes, but … https://www.socialeurope.eu/minimum-wage-directive-yes-but

Institut Jacques Delors: Publications, 18/11/2020: A move towards adequate minimum wages in the European Union? https://institutdelors.eu/en/publications/a-move-towards-appropiate-minimum-wages-in-the-european-union-2/

European Parliamentary Research Service (EPRS: At a Glance, 24/11/2020: The Proposed Minimum Wage Directive https://www.europarl.europa.eu/thinktank/en/document.html?reference=IPOL_ATA(2020)658208

Nordic Labour Journal: In Focus 2021: The battle over statutory minimum wages http://www.nordiclabourjournal.org/i-fokus/in-focus-2021/the-battle-over-statutory-minimum-wages

European Parliamentary Research Service (EPRS): Briefing, 19/01/2021: Adequate minimum wages - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2021)662600

EurActiv: Opinion, 02/03/2021: Adequate Minimum Wages proposal – an attack on collective bargaining https://www.euractiv.com/section/economy-jobs/opinion/adequate-minimum-wages-proposal-an-attack-on-collective-bargaining/

IPS Journal: European Integration, 04/03/2021: Behind Europe’s ‘iron wage curtain’ https://www.ips-journal.eu/topics/european-integration/behind-europes-iron-wage-curtain-5021/

Social Europe, 08/04/2021: Minimum-wages directive: it’s legal https://socialeurope.eu/minimum-wages-directive-its-legal

ETUC: Press Release, 22/04/2021: Minimum Wage Directive improvements: the least working people deserve https://www.etuc.org/en/pressrelease/minimum-wage-directive-improvements-least-working-people-deserve

Hungary Today, 16/05/2021: EU Minimum Wage Policy – Would Hungary Benefit or Lose if Implemented? https://hungarytoday.hu/eu-minimum-wage-hungary/

Social Europe, 13/07/2021: A minimum-wage directive could undermine the Nordic model https://socialeurope.eu/a-minimum-wage-directive-could-undermine-the-nordic-model

Social Europe, 13/09/2021: Minimum-wage directive: the case for a ‘social partners option’ https://socialeurope.eu/minimum-wage-directive-the-case-for-a-social-partners-option

European Trade Union Confederation (ETUC): Press Release, 27/09/2021: EU must follow Germany on minimum wages https://www.etuc.org/en/pressrelease/eu-must-follow-germany-minimum-wages

European Confederation of Independent Trade Unions (CESI), 13/10/2021: Minimum wages: CESI calls for ambitious and balanced EU minimum wage framework https://www.cesi.org/posts/minimum-wages-cesi-calls-for-ambitious-and-balanced-eu-minimum-wage-framework/

The Economist: Charlemagne, 13/11/2021: Minimum wage, maximum rage https://www.economist.com/europe/2021/11/13/minimum-wage-maximum-rage

Social Europe, 26/11/2021: More ambitious European minimum-wages directive demanded https://socialeurope.eu/more-ambitious-european-minimum-wages-directive-demanded

London School of Economics (LSE): EUROPP Blog, 30/11/2021: Why trade unions have a problem with the minimum wage and what can be done about it https://blogs.lse.ac.uk/europpblog/2021/11/30/why-trade-unions-have-a-problem-with-the-minimum-wage-and-what-can-be-done-about-it/

European Disability Forum (EDF), 01/12/2021: European Parliament agrees to continue work on the Minimum Wage Directive https://www.edf-feph.org/european-parliament-agrees-to-continue-work-on-the-minimum-wage-directive/

European Trade Union Institute (ETUI): News, 10/01/2022: Adequate minimum wages in Germany and Europe https://www.etui.org/news/adequate-minimum-wages-germany-and-europe

EurActiv: Opinion, 18/01/2022: The EU needs to respect different labour market models https://www.euractiv.com/section/economy-jobs/opinion/the-eu-needs-to-respect-different-labour-market-models/

EurActiv: Interview, 08/04/2022: Employers’ representative: EU needs competitiveness check, not minimum wage directive https://www.euractiv.com/section/future-eu/interview/employers-representative-eu-needs-competitiveness-check-not-minimum-wage-directive/

Euronews, 08/06/2022: How do EU member states compare on minimum wage? https://www.euronews.com/my-europe/2022/06/08/what-are-eu-member-state-policies-on-minimum-wage

Jacques Delors Institute (Notre Europe) Blog, 15/06/2022: One step closer to adequate minimum wages in the EU https://institutdelors.eu/en/publications/one-step-closer-to-adequate-minimum-wages-in-the-eu/

Social Europe, 01/07/2022: Minimum-wages directive — history in the making https://socialeurope.eu/minimum-wages-directive-history-in-the-making

Emerging Europe: News & Analysis, 04/08/2022: What does the EU’s minimum wage directive mean for CEE member states? https://emerging-europe.com/news/what-does-the-eus-minimum-wage-directive-mean-for-cee-member-states/

Greens/EFA EP Group: Opinion, 13/09/2022: Working but poor - how the EU can fix decent minimum wages for everyone https://www.greens-efa.eu/opinions/eu-minimum-wage-directive/

Ius Laboris: Insights, 19/09/2022: The EU approves a minimum wage Directive: what does it say? https://iuslaboris.com/insights/the-eu-approves-a-minimum-wage-directive-what-does-it-say/

European Parliamentary Research Service (EPRS): Briefing, 16/10/2022: Directive on adequate minimum wages https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)733535

Hertie School: Jacques Delors Centre: Policy Brief, 29/11/2022: The EU directive on fair and adequate minimum wages: Low-pay work, collective bargaining and the prospects for income growth https://www.delorscentre.eu/en/publications/fair-and-adequate-minimum-wages

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