In the EU, large differences exist between Member States in the coverage of workers by collective agreements and the level of minimum wages. This is also the effect of the very different labour market models in Member States.

While respecting these differences, the European Commission had proposed in October a Directive on adequate minimum wages in the EU, setting a procedural framework to promote a better and more effective minimum wage protection in all Member States.

Earlier this month, the EU Council agreed to negotiate further with the European Parliament on the European Commission proposal. The proposal is also intended to promote collective bargaining on wage setting and to improve the effective access to minimum wage protection of those workers who are entitled to a minimum wage.

In order to promote the adequacy of statutory minimum wages and thus to achieve decent working and living conditions, Member States with statutory minimum wages are tasked to put a procedural framework in place to set and update these minimum wages according to a set of stable and clear criteria. The statutory minimum wages will be updated in a regular and timely manner.