Preliminary agreement on new EU minimum wage legislation

Preliminary agreement on new EU minimum wage legislation

MEPs and the European Council have reached an interim agreement after overnight negotiations on a directive on a fairer EU minimum wage. If passed, the new law should improve working and living conditions for European workers and combat inequality.

The directive sets out the requirements for the national minimum wage. This includes looking at the purchasing power of employees and the relationship with other wages in a country.

Test vs Standard

Countries should test minimum wages against, for example, the international standard of at least 50 percent of average gross wages and 60 percent of average gross wages, says PvdA MEP and chief negotiator for Parliament Agnes Jongerius .

“With 22 other European countries, the Netherlands does not meet this standard. A clear signal from Europe that we should increase the minimum hourly wage in the Netherlands to 14 euros,” Jongerius said in a statement.

Better situation during collective labor agreement negotiations

Another part of the agreement is a better position for employees and unions in collective bargaining. EU member states should do their best to provide more employees covered by collective agreements.

In addition, trade union rights are created. For example, member states must intervene if employees and union leaders are pressured by an employer.

Jongerius describes the employees as the “big winners” of this agreement.

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