National statutory minimum wages 3 are lower than 60% of the gross median wage and/or 50% of the gross average wage in almost all Member States 4. In the majority of Member States with national statutory minimum wages, minimum wages are too low vis-à-vis other wages or to provide a decent living, even if they have increased in recent years. However, many workers are currently not protected by adequate minimum wages in the EU. Minimum wage protection also supports gender equality, since more women than men earn wages at or around the minimum wage. When set at adequate levels, minimum wage protection ensures a decent living for workers, helps sustain domestic demand, strengthens incentives to work, and reduces in-work poverty and inequality at the lower end of the wage distribution. Minimum wage protection can be provided by collective agreements (as is the case in 6 Member States) or by statutory minimum wages set by law (as is the case in 21 Member States). Ensuring workers in the Union have access to employment opportunities, and to adequate minimum wages is essential to support a sustainable and inclusive economic recovery. The Covid-19 crisis has particularly hit sectors with a higher share of low-wage workers such as retail and tourism and has had a stronger impact on the disadvantaged groups of the population.
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The role of minimum wages becomes even more important during economic downturns. This has led to more in-work poverty and wage inequality. Structural trends reshaping labour markets such as globalisation, digitalisation and the rise in non-standard forms of work, especially in the service sector, have led to an increased job polarisation resulting in turn in an increasing share of low-paid and low-skilled occupations, and have contributed to an erosion of traditional collective bargaining structures. In recent decades, low wages have not kept up with other wages in many Member States. Competition in the Single Market should be based on innovation and productivity improvements, as well as on high social standards. Addressing large differences in the coverage and adequacy of minimum wages contributes to improving the fairness of the EU labour market, to stimulating productivity improvements and to promoting economic and social progress. Everyone must have access to minimum wages either through collective agreements or through statutory minimum wages.”īetter working and living conditions, including through adequate minimum wages, benefit both workers and businesses in the Union. This is why the Commission will put forward a legal proposal to support Member States to set up a framework for minimum wages. Dumping wages destroys the dignity of work, penalises the entrepreneur who pays decent wages and distorts fair competition in the Single Market. In her State of the Union address of September 2020, President von der Leyen stated that: “The truth is that for too many people, work no longer pays.
#SALARIU MINIM 2021 HOW TO#
A first-stage consultation of the social partners on how to ensure adequate minimum wages for workers in the Union was launched on the same day 2.
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The Communication of 14 January 2020 on “Building a Strong Social Europe for Just Transitions” 1 set out a roadmap for the preparation of the Action Plan and confirmed the commitment to an initiative on minimum wages among the key actions to be pursued at EU level in this context. The Political Guidelines for the Commission 2019-2024 announced an Action Plan to fully implement the Pillar, including an initiative on fair minimum wages. The Strategic Agenda for 2019-2024, agreed at the European Council in June 2019, called on the implementation of the Pillar at EU and national level. Principle 6 of the Pillar on ‘Wages’ calls for adequate minimum wages as well as for transparent and predictable wage setting to be put in place, according to national practices and respecting the autonomy of the social partners. In November 2017, the European Parliament, the Council and the Commission proclaimed the European Pillar of Social Rights (hereafter the Pillar) to deliver on Europe’s promise of prosperity, progress and convergence, and make social Europe a reality for all. Convergence across Member States in this area contributes to the promise of shared prosperity in the Union. Adequate wages are an essential component of the EU model of a social market economy.