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Are minimum wages in Europe adequate and effective?

The latest episode of Eurofound Talks, recorded shortly before Eurofound publishes its harmonised analysis of 2024 minimum wage developments, looks at the changes to minimum wages in 2023. Mary McCaughey speaks with Eurofound experts Christine Aumayr-Pintar and Carlos Vacas-Soriano about the adequacy of minimum wages in Europe as they stand at the moment, how the EU has sought to improve the situation of low-wage earners through a Directive on adequate minimum wages, and how widespread the issue of minimum wage non-compliance is in the European Union.

Ανακοίνωση για την έναρξη της διαδικασίας καθορισμού του Κατώτατου Μισθού έτους 2024

Την Παρασκευή 2 Φεβρουαρίου 2024 συνεκλήθη η Τριμελής Επιτροπή Συντονισμού της Διαβούλευσης για τον επανακαθορισμό του νομοθετημένου Κατώτατου Μισθού και του νομοθετημένου ημερομισθίου, υπό την Προεδρία του Προέδρου του Ο.ΜΕ.Δ. κ. Κώστα Παπαδημητρίου, Ομ. καθηγητή Νομικής Αθηνών, αποστέλλοντας προσκλήσεις στους αρμόδιους επιστημονικούς φορείς για μελέτη και υποβολή, εκ μέρους τους, των σχετικών εκθέσεων.

Minimum wages for low-paid workers in collective agreements

In this pilot project, Eurofound successfully established the feasibility of, and piloted, an EU-wide database of minimum pay rates contained in collective agreements related to low-paid workers. A conceptual and measurement framework was devised, a total of 692 collective agreements – related to 24 low-paid sectors of interest – were selected to be ‘fully coded’ and representative data on negotiated minimum pay were compiled for 24 EU Member States. Based on more than 3,202 renewal texts, time series of collectively agreed minimum rates were created from 2015 to 2022 for 19 countries.

Minimum wages: Non-compliance and enforcement across EU Member States – Comparative report

In the EU, non-compliance with statutory or negotiated minimum wages averages 6.93% or 1.3%, depending on the statistics used. The lowest national estimate is 0.01% in Belgium and the highest is 11.59% in Hungary. It mostly affects young workers, those on fixed-term or part-time contracts and those working for small companies. It is more common in services than in manufacturing, and is characterised by shorter working time. Member States monitor, enforce and promote compliance in similar ways, although with some differences. This report identifies hindering and enabling factors.

A Review of Wage Setting through Collective Bargaining

Wages are among the central subjects for collective bargaining. Collective bargaining may set wage floors as well as setting wages above these floors where economic factors allow, and wage adjustments which may ensure that workers get a fair share of productivity gains while not impairing the capacity of employers to operate profitably.

Ανακοίνωση για την περάτωση της διαδικασίας διαβούλευσης για τον καθορισμό Κατώτατου Μισθού, έτους 2023

Οι εργασίες της Επιτροπής Διαβούλευσης για τον Κατώτατο Μισθό & το Κατώτατο Ημερομίσθιο για το έτος 2023, υπό την προεδρία του Προέδρου του Ο.ΜΕ.Δ. και Ομ. Καθηγητή Νομικής Αθηνών κ. Κώστα Παπαδημητρίου, και με τη συμμετοχή των εκπροσώπων των Υπουργών Εργασίας & Κοινωνικών Υποθέσεων και Οικονομικών, αντιστοίχως, μελών της επιτροπής κκ. Απόστολου Αγναντόπουλου και Μιχαήλ Αργυρού, ολοκληρώθηκαν με την αποστολή του Σχεδίου Πορίσματος της Διαβούλευσης του ΚΕΠΕ, την Τρίτη 28 Φεβρουαρίου 2023, προς τους αρμόδιους υπουργούς Οικονομικών & Εργασίας και Κοινωνικών Υποθέσεων.

Council adopts recommendation on adequate minimum income

This Council recommendation aims to combat poverty and social exclusion, and to pursue high levels of employment by promoting adequate income support by means of minimum income, effective access to enabling and essential services for persons lacking sufficient resources and by fostering labour market integration of those who can work.

How to ensure adequate minimum wages in an age of inflation

Minimum wages have risen significantly in 2022, as the EU Member States leave behind the cautious mood of the pandemic. However, rising inflation is eating up these wage increases, and only flexibility in the regular minimum wage setting processes may avoid generalised losses in purchasing power among minimum wage earners.

Minimum wages: Council and European Parliament reach provisional agreement on new EU law

The presidency of the Council and European Parliament negotiators reached a provisional political agreement on the draft directive on adequate minimum wages in the EU. The new law – once finally adopted – will promote the adequacy of statutory minimum wages and thus help to achieve decent working and living conditions for European employees.

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