EU minimum wages: Parliament and Council reached compromise

On 6 June 2022, the European Parliament and the Council reached a compromise in their negotiations on the proposal for a Minimum Wage Directive. Overall, HOTREC very much welcomes that the criteria included under the adequate statutory minimum wage are not mandatory. Notably, reference to international reference values such as 60% of the gross median wage and 50% of the gross average wage could be included and/or indicative reference values used at the national level.

We also welcome the fact that variations and deductions need to be proportionate and have a legitimate objective.

We are, nevertheless, concerned with the promotion of collective bargaining in wage settings. In fact, where the collective bargaining coverage rate is less than a threshold of 80%, Member States shall provide a framework for enabling conditions for collective bargaining and establish an action plan to promote collective bargaining. This, in our view, interferes directly with the autonomy of social partners.

On 16 June, Social Affairs Ministers formally approved the agreement. In September, the proposal is scheduled to be formally approved during the European Parliament plenary session.

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