EU Adopts New Rules on Adequate Minimum Wages for Workers

With 505 votes in favour, 44 abstentions, and 92 against, the Parliament adopted the new legislation on adequate minimum wages on Wednesday, September 14, AtoZSerwisPlus.com reports.

This EU law aims to improve working as well as living conditions for all workers in the EU. In addition, the law aims to promote economic and social progress.

To this end, the law establishes minimum requirements for the adequacy of statutory minimum wages as provided by national law and collective agreements. Moreover, it also enhances effective access of workers to minimum wage protection.

“Minimum wages in all EU countries should allow for decent living and working standards, and member states should promote collective bargaining for pay,” the statement of the Parliament reads.

The Parliament explains that the new directive will apply to all workers in the EU who have an employment contract or employment relationship. In addition, the same notes that the EU countries in which the minimum wage is already protected will not be obliged to introduce these rules or make these agreements applicable.

In line with the new rules, each Member State will be responsible for setting their minimum wage and guaranteeing that their national minimum wages allow all workers to lead a decent life.

In addition to the above-mentioned, it has been pointed out that cross-industry and sectoral level collective bargaining is an essential factor for achieving satisfactory minimum wages. Therefore, according to the new rules approved by MEPs, Member States will have to establish an action plan to increase the coverage in countries where fewer than 80 per cent of workers are covered by collective bargaining.

The EU countries will also be obliged to set up an enforcement system, including controls and field inspections, and reliable monitoring to ensure compliance and address non-recorded overtime, bogus self-employment, and abusive sub-contracting.

“Prices for groceries, energy bills and housing are exploding. People are really struggling to make ends meet. We have no time to waste; work must pay again. This directive sets the standards for what an adequate minimum wage should look like. At the same time, we are giving a boost to collective bargaining, so more workers will be better protected,” Agnes Jongerius said.