In 2020, the European Commission published a proposal for a directive to improve the adequacy of minimum wages in the EU. The European Parliament’s employment committee is currently working on the Commission’s proposal and is expected to vote on it in September 2021, followed by a vote by all MEPs.
It is meant to not only protect workers in the EU, but also help to close the gender pay gap, strengthen incentives to work and create a level playing field in the Single Market.
The proposal takes into account national competences and social partners’ contractual freedom and does not set the level of minimum wages. The directive wants to promote collective bargaining on wages in all EU countries. For countries with statutory minimum wages, it aims to ensure that the minimum wages are set at adequate levels, while taking into account socio-economic conditions as well as regional and sectoral differences.