On 28 October, the European Commission issued a Proposal for a Directive on adequate minimum wages in the EU to guarantee adequate working and living conditions, as well as to build fair and resilient economies and societies. It also aims to deliver on Principle 6 of the European Pillar of Social Rights towards making social Europe a reality for all.

Better working and living conditions, including through adequate minimum wages, benefit both workers and businesses in the EU. Minimum wage protection also supports gender equality, since more women than men earn wages at or around the minimum wage. In her State of the Union address of September 2020, European Commission President, Ursula von der Leyen stated that everyone must have access to minimum wages either through collective agreements or through statutory minimum wages.

The proposed Directive also takes into account and fully respects the specificities of national systems, national competencies, social partners’ autonomy and contractual freedom. It is also designed in such a way to safeguard access to employment and consider the effects on job creation and competitiveness, including for SMEs.

The proposal is found here.