The European Union (EU) parliament has voted in favour of legislation regarding adequate minimum wages for member states.
Member states will have to guarantee that their national minimum wage allows workers to lead a decent life by taking into account the cost of living and wider pay levels. In order to adequately assess their existing statutory minimum wages, they can establish what a basket of goods and services is likely to cost, or set it at 60% of the gross median wage and 50% of the gross average wage.
There were 505 votes in favour, with 92 against and 44 abstentions. The council is expected to formally approve the agreement this month, from which point member states will have two years to comply.
The legislation applies to all EU staff who have an employment contract or employment relationship. If an EU country already protects minimum wages exclusively via collective agreements, it will not be obliged to introduce the rules or to make them universally applicable.
The EU also introduced an obligation for member states to set up an enforcement system, including reliable monitoring, and controls and field inspections, to ensure compliance and address abusive sub-contracting, bogus self-employment, non-recorded overtime or increased work intensity.
Dennis Radtke, German politician and member of the European Parliament, said: “The current situation clearly demonstrates once again that we need functioning, strong social partnership in Europe. Politics cannot give a comprehensive answer to every aspect of this crisis.”
Agnes Jongerius, Dutch politician and member of the European Parliament, added: “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.”