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EU minimum wage directive: last stand for the Nordics?

2021 looks set to be the year when the issue of statutory minimum wages in Europe will be settled. The debate has lasted a long time and opinions are divided, but on 28 October 2020, the EU Commission finally presented a proposed directive which will be processed by the European Council and the EU Parliament.
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Ursula von der Leyen

has made minimum wages an important issue after she took over as President of the European Commission. Already in her first speech (pictured above) she raised the issue of minimum wages.

Facts about minimum wages

The idea behind the EU Commission’s proposal is not to introduce a standardised minimum wage in all EU countries. The proposal does not contain any proposed wage levels at all, in fact. It only talks about an “adequate” minimum wage. Still, in such circumstances, it is still common to point to a level that is 60% of the median wage in respective countries, or 50% of the average wage. 

Using that definition, the minimum wage would go up in 17 out of the 21 member states that already have a statutory minimum wage. In total, 25 million workers would get a pay rise. The highest increase would come in Spain, the Czech Republic and Estonia. The four countries with a statutory minimum wage above this template level are Bulgaria, France, Portugal and Slovenia. The six member states achieving an “adequate” minimum wage through the collective agreement model would, according to the Commission, not be asked to implement the directive.

Theme: The Nordic unions and minimum wages

This is the first article in our topic on minimum wages. Find all the articles here:

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