In Germany, the minimum wage will be raised to twelve euros in October. However, there is no legal minimum wage in all EU countries. With a law, the European Parliament wants to enforce uniform guidelines for minimum wages. This is met with criticism, especially in Nordic countries.
The European Parliament has approved uniform standards for minimum wages in the European Union. A large majority of MEPs voted in favor of a law previously negotiated by parliamentary and EU negotiators. Minimum wages should therefore be considered fair if they represent 50 percent of the average gross income. Now the way is almost clear for the rules to come into force after a transitional period of two years. The EU states still have to agree to the project, but this is considered a formality.
While the compromise does not set a uniform level, it does set standards for how statutory minimum wages can be set, updated and enforced. In addition, EU countries must define action plans to increase collective bargaining coverage if the rate is below 80 percent. Even if the member states are not obliged to introduce a wage floor, they must “ensure that their national minimum wages enable workers to lead a decent life,” explained the EU Parliament. According to the EU statistics agency Eurostat, 21 out of 27 EU countries have national statutory minimum wages. Minimum wages are only protected by collective agreements in six Member States.
The chief negotiator in the European Parliament, Dennis Radtke, said: “We need a functioning, strong social partnership everywhere in Europe.” The CDU politician would have liked the compromise to be more ambitious: “To be honest, I find it unbearable that in some places – including in Germany – it is possible to achieve the statutory minimum wage by paying, for example, holiday bonuses, Christmas bonuses, allowances such as dirt allowances , noise allowances or even tips can be included in the minimum wage.” However, it was not legally possible to regulate this at EU level.
The Federal Government welcomed the agreed regulations. The one-off increase in the minimum wage to twelve euros per hour decided by the Bundestag is in line with the requirements of the directive. From October, Germany will have one of the highest minimum wages in the EU. “In this respect, with regard to the minimum wage directive, after a preliminary examination, no need for adjustment is seen in the German minimum wage legislation,” said the Ministry of Labor.
The European Union must not set specific wage levels, but only issue guidelines. Nordic countries in particular had been critical of the project. There is no statutory minimum wage there, but there is a relatively high collective bargaining agreement. Countries feared that the EU would interfere too much in national affairs.
