Landmark moment as Adequate Minimum Wage Directive comes into force

Today, 15 November 2024, marks the deadline for the transposition of the EU Adequate Minimum Wage Directive into national legislation across the EU. The Directive seeks to establish a framework to improve the adequacy of minimum wages and to increase the access of workers to minimum wage protection.

In all Member States, the Directive will promote collective bargaining on wages and assist in improving the enforcement and monitoring of the minimum wage protection established in each country.

In Member States with statutory minimum wages, the Directive will ensure that the conditions are met for statutory minimum wages to be set at adequate levels, with clear and stable criteria for minimum wage setting, indicative reference values to guide the assessment of adequacy, regular and timely updates of minimum wages, and the establishment of consultative bodies to advise the competent authorities

The Directive reflects Member States' competences and social partners' autonomy and contractual freedom in the field of wages, and does not oblige Member States relying on collective agreements to introduce statutory minimum wages, nor establish the level of pay or set a harmonised minimum wage.

Minimum wage levels are a core area of research for Eurofound, with the Agency publishing an annual comparative analysis of minimum wage levels as well as wage-setting mechanisms, among other outputs. In recent years, Eurofound research has emphasised the importance of adequate minimum wages in safeguarding workers against the impacts of inflation, as well as the broader impacts of changes to minimum wages on the labour market (such as on the wage of lower-paid employees and on wage inequality levels).

Speaking on the transposition of the Directive, Eurofound Executive Director Ivailo Kalfin said, ‘Today is not only a landmark moment for labour and social policy in Europe, but also for minimum wage and low-wage earners throughout the EU. Together, the European institutions and Member States have reached an agreement that potentially will benefit citizens across the bloc. Eurofound stands committed, through its work, to contribute research that supports the Directive and adequate minimum wages in Europe.'

More information:

• Watch the video: Eurofound researcher Carlos Vacas speaks about how the EU Minimum Wage Directive can benefit minimum wage earners
• Discover Eurofound’s research: Minimum wages in Europe