ESG Weekly Update – June 15, 2022

EU: Provisional Political Agreement Reached on EU Adequate Minimum Wage Draft Directive

On June 7, the European Council and Parliament reached a provisional political agreement on the draft directive on adequate minimum wages in the EU. Minimum wage currently varies across the EU as each Member State sets their own standards: 21 out of 27 countries have a statutory minimum wage, while the rest have minimum wages determined by collective bargaining. This results in monthly minimum wages ranging from €332 in Bulgaria to €2,202 in Luxembourg.

The draft directive sets out a framework for adequate minimum wages but does not set a fixed minimum wage. The areas considered by the new law are the adequacy of minimum wages and effective access to minimum wage protection. The draft directive also requires Member States to monitor the coverage and adequacy of minimum wages and report data to the Commission on an annual basis.