The minimum wage in most European Union countries is rising this year. In Poland, the minimum wage increased by 17 percent, the highest rise, but the differences remain very large. This is reported by Eurofound, an EU-established organization for improving living and working conditions, in a new report.
A guaranteed minimum wage for all workers is more necessary than ever according to the European Commission. It has conducted a consultation round with 23 umbrella organizations of employers and employees and will now engage with social partners from various member states. A decent income for all workers in the EU is called "essential for recovery after the crisis" and necessary for rebuilding a fair and resilient economy, according to the EU executive.
More than 20 EU countries have a minimum wage but sometimes it is below the subsistence level. Six member states have no legal regulation. In Luxembourg, Ireland, and the Netherlands, the minimum wage is the highest. The Grand Duchy again leads the way, with 2,142 euros (+2 percent). In Bulgaria, the minimum wage in the EU is the lowest at 312 euros per month.
After Belgium in fourth place, Germany and France follow in the ranking. Eurofound estimates that 9 percent of employees are covered by minimum wage protection and fall under a collective labor agreement.
Dutch Member of the European Parliament Agnes Jongerius (PvdA) calls a European framework for a mandatory or collective minimum wage urgently necessary. The crisis has made clear how much society depends on occupational groups and sectors such as nurses, garbage collectors, and cleaners, she states. "In recent weeks, there has been no shortage of appreciative gestures and words of thanks. Now it is time to turn applause into decent pay."
Earlier this year, EU Commissioner Nicolas Schmit (Jobs and Social Rights) already announced plans to introduce legislation this year on a guaranteed minimum wage in the EU. The European Commission emphasizes that it does not pursue a uniform European minimum wage, nor a harmonized system for all countries.
According to the European Trade Union Confederation (ETUC), 40 percent of workers in the EU have suffered income losses since the outbreak of the respiratory disease. The organization advocates for a minimum wage of at least 60 percent of the average wage in a member state.