New Rules For Minimum Wage Levels – Employee Rights/ Labor Relations

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Key Points

  • The European Parliament implemented new rules aimed at protecting the rights of workers throughout the European Union

Overview

European Parliament adopted new rules for minimum wage requirements for member states throughout the European Union (EU). The rules specifically focus on the following:

  • Member states will need to set a statutory minimum wage to at least 60% of the gross median wage and 50% of the gross average wage. This may result in increases in minimum wage in some European countries.
  • Member states where fewer than 80% of workers are covered by collective bargaining will have to establish an action plan to increase coverage for workers.
  • Member states have been advised to establish enforcement systems that will include reliable monitoring and appropriate penalties.

According to the update, EU member states with minimum wages that are already protected exclusively via collective agreements will not be obliged to introduce these new rules.

For additional information on the new legislation, check
here.

What are the Changes?

The European Parliament implemented new rules aimed at protecting the rights of workers throughout the European Union. According to the EU, the new legislation aims to better protect working and living conditions for all workers throughout the EU, as well as promote economic and social progress by strengthening collective bargaining abilities. Member states are expected to respect national wage-setting practices.

Originally published SEPTEMBER 22, 2022

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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