European Union: Minimum Wage Directive Formally Adopted

As an update, EU institutions have adopted the proposed Directive on adequate minimum wages in the European Union establishing a framework to improve the adequacy of minimum wages and increase the access of workers to minimum wage protection. The Directive does not require the EU Member States to introduce statutory minimum wages, nor does it establish a common minimum wage level across the European Union. However, if the EU Member State has a statutory minimum wage, the Directive requires minimum wages to be linked to the gross median wage or gross average wage, which could trigger a minimum wage increase. These Member States must also establish national criteria for statutory minimum wage, regular and timely updates; and the establishment of consultative bodies.  Additionally, the Directive requires the EU Member States to take action to increase collective bargaining rates. The Directive will enter into force 20 days after its publication marking a two-year timeframe for the EU Member States to transpose its provisions into their national law.