The European Commission welcomes the adoption of the Directive on adequate minimum wages by the European Parliament and the Council of the European Union. Today, the Council gave green light to the file, following the earlier approval in the European Parliament.

The Commission calls on Member States to swiftly transpose and implement the Directive to reap its full benefits and stands ready to support them in this process.

The Commission proposed an EU Directive in October 2020, to ensure that the workers in the Union are protected by adequate minimum wages allowing for a decent living wherever they work. This follows up on the commitment by President von der Leyen in her Political Guidelines to propose a legal instrument to ensure that workers in the EU have a fair minimum wage, while stressing the importance of social dialogue.

When set at adequate levels, minimum wages have a positive social impact and bring wider economic benefits. Adequate minimum wages are important to strengthen social fairness and underpin a sustainable and inclusive economic recovery.

Adequate minimum wages:

• help reduce wage inequality
• sustain domestic demand
• strengthen incentives to work
• contribute to reducing gender pay gap
• contribute to ensuring a fair competition for employers that pay decent wages

The Directive creates a framework to improve the adequacy of minimum wages in countries with statutory minimum wages. It also aims to promote collective bargaining as well as better enforcement and monitoring in all Member States. 

This is done in full respect of Member States' competences and social partners' autonomy and contractual freedom. The Directive does not oblige Member States to introduce statutory minimum wages, nor does it set a common minimum wage level.