09.06.2022

THE EU IS PREPARING COMMON RULES FOR SETTING THE MINIMUM WAGE

The European Parliament and the Council of the EU have agreed on European rules to set a minimum wage, as set out in national legislation or collective agreements. The new legislation will apply to all EU workers who have a contract of employment.

Member States will need to assess whether their minimum wages can currently ensure a decent standard of living, taking into account socio-economic conditions, purchasing power or levels of long-term national productivity or development.

To this end, they could create a consumer basket of goods and services at real prices, as well as apply internationally used values ​​such as 60 percent of gross average wages. Member States in which less than 80 per cent of the workforce is protected by collective bargaining will need to draw up an action plan so as to gradually increase this percentage.

In order to develop the best strategy, they will need to involve the social partners and inform the Commission of the measures taken, as well as make their plan public. States will also be required to put in place a system that includes reliable surveillance, controls and on-site inspections to ensure compatibility and tackle abuses such as over-negotiation, bogus self-employment, unmarked overtime or increased work intensity. National authorities will have to ensure that workers' rights are restored in the event of their violation.

In order to enter into force, the agreement must be approved by the European Parliament's Committee on Employment and Social Affairs and then voted on in plenary. The Council must also approve it.