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The Council and the European Parliament reached a provisional agreement on 7th June on a new EU directive to establish a framework for “adequate minimum wages” in Europe. The aim is not to set a common European minimum wage.
The EU wants to improve the working and living conditions of its citizens. Fair wages that ensure a decent standard of living are one of the principles of the European Social Charter. The draft directive takes into account different traditions and different starting points.
Member States with statutory minimum wages are invited to establish a procedural framework for setting and updating them according to a clear set of criteria. Updates of statutory minimum wages will take place at least every two years, or at most every four years for those countries that use an automatic indexation mechanism. The social partners should be involved in the process of setting and updating statutory minimum wages.
