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ARTICLE · 20 SEPTEMBER 2022

The EU Approves A Minimum Wage Directive: What Does It Say?

On 14 September, the European Parliament approved a Directive introducing the principle of a minimum wage in the European Union.

European UnionEmployment and HR

On 14 September, the European Parliament approved a Directive introducing the principle of a minimum wage in the European Union. What does it say, and will it herald a new era for collective bargaining?

Summary

On 14 September 2022, the European Parliament voted to approve a Directive on adequate minimum wages in the EU, with 505 votes in favour, 92 against and 44 abstentions.

The Directive will not interfere with member states' freedom to choose between setting minimum wages by law or promoting protection through collective agreements. In addition, the EU treaty (Article 153 TFEU) prevents direct EU intervention on wages in the member states, and that means that the Directive does not set a figure for the minimum wage.

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