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21/10/2013

A coordinated EU minimum wage policy

Draft version
Annex (draft)



Although minimum wages are set at national level and the EU has no competences on this matter, there is an on-going debate about the possibility of coordinating minimum wage policy across Member States, for instance by setting a common threshold of 60% of the median wage in each country. In the majority of EU Member States, minimum wages are set by government regulation. Germany together with Austria, Denmark, Finland, Italy and Sweden are the exceptions. In these countries minimum wages are set by collective bargaining agreements. This report evaluates the potential impact of such a common minimum wage threshold estimating the number of workers potentially affected. The use of a common metric allows the evaluation and comparison of the existing systems and levels of minimum wages in Europe in a highly illustrative way. The country that stands out the most in this exercise is Germany.

author(s): European Foundation for the Improvement of Living and Working Conditions – E. Fernández-Macías, C. Vacas-Soriano
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