On June 7, the Council of the European Union and European Parliament negotiators reached a provisional political agreement on the draft directive on adequate minimum wages in the EU.

Once adopted, this Directive will promote the adequacy of statutory minimum wages and thus help to achieve decent working and living conditions for European employees.

The proposed minimum wage directive is not a one-size-fits-all, as through this Directive the EU is not aiming to introduce a common European minimum wage. On the contrary, the Directive caters for the different traditions and starting points of the different Member States and strengthens the role of social partners and collective bargaining.

This Directive establishes procedures for the adequacy of statutory minimum wages, promotes collective bargaining on wage setting and enhances the effective access to minimum wage protection for those workers who are entitled to a minimum wage under national law – example by a statutory minimum wage or collective agreements.

The Council and the European Parliament will now need to formally approve this agreement before it enters into force as EU Law. Member States will have two years to transpose the directive into national law.