9

The EU is preparing for rules for fair minimum wages in the EU:

A new draft EU law will ensure a minimum level of wage protection in all member states, in order to guarantee decent living standards for workers and their families.

Simply eyeballing the figures from OECD.stats, there is quite a difference between EU states for the minimum relative to average wages of full-time workers. This means that when the minimum wage rule kicks in, states will be impacted differently.

A significant (way more the inflation rate, for example) increase in minimum wage seem to be a very complicated issue and it is hard to understand the effects based on the macroeconomic indicators.

I cannot find the rule for minimum wage computation, but this article (in Romanian, present impact for Romania) suggests that the minimum wage should be 60% of the gross average one. For the specific case of Romania, that would mean a 40% increase that would be observed by almost half the workers.

I am wondering how the EU Parliament reached the 60% figure. Is this a figure that is country-specific?

1 Answer 1

4

The use of indicators commonly used at international level, such as 60% of the gross median wage and 50% of the gross average wage, can help guide the assessment of minimum wage adequacy in relation to the gross level of wages.

Source

The EU did not come up with the number itself.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .