The draft Directive does not oblige Member States to introduce a minimum wage and does not set a common level for the whole European Union. It aims to create a European framework to improve the protection offered by adequate minimum wages in order to strengthen social equity and support a sustainable and inclusive economic recovery. Better living and working conditions benefit employees, businesses, society and the economy in general by stimulating productivity and competitiveness.
The main elements of the Directive are:
- Clear and stable criteria for setting and updating statutory minimum wagesMember States with statutory minimum wages are called upon to establish a sound governance framework for setting such wages. The criteria to be taken into account will include purchasing power, taking into account taxes and social benefits, the growth rate of gross wages, the general level and distribution of gross wages and the evolution of labour productivity. Regular updates and the establishment of consultative bodies will be required.
- Promotion of collective bargaining for wage determination:This applies in particular to countries which have not set a legal minimum wage, which is not made mandatory by the Directive. On the other hand, Member States whose collective bargaining coverage is less than 80% will have to draw up an action plan to promote it. In countries with higher coverage, the proportion of low-wage workers is generally lower and wages are higher.
- Improved monitoring and enforcement of minimum wage protection:Each Member State will have to develop data collection tools to monitor the coverage and adequacy of minimum wages. Workers will need access to a dispute resolution mechanism and a right of appeal.
The proposal will be submitted for approval by the European Parliament and the Council. Once the Directive is adopted, Member States will have two years to transpose it into national law.
To go further...
ACTE International, Global Supply Chain Management Specialist and International Auditing and CSR Consulting Firm complete your risk mapping and assist you in the deployment of your ethical vigilance and policy plan in Asia, Africa, Europe and the Americas.
To read more
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce tortor lake, ornare dictum odio no, mollis tincidunt mi. Vivamus feugiat turpis ac consequattrices. Nam nec leo in nisi posuere vehicula. None porta tempus feugiat. Praesent shovel, urna sed placerat sodales, ex tellus ultricies velit, vitae auctor augue diam at quam. Praesent ornare arcu and sem curriculum molestie. Morbi congue arcu velit, a laoreet torture ultricies id. Duis vulputate lacinia magna, eget elementum mi pulvinar eget. Sed consectetur malesuada ultricies. In eget purus nect velit sodales ullamcorper eget in ligula. Mauris ulcers posuere lobortis. Nulla nisi purus, beaconra no is ac, faucibus lacinia torturer. Integer nunc duei, vehicula finishedbus had, euismod and orci. No mollis vestibulum luctus.
Interdum and malesuada fames ac ante ipsum primis in faucibus. Sed a ligula sagittis, eleifend metus ac, sagittis purus. Vivamus ut blandit dolor, id aliquam mi. Sed tempor tempus ornare. Sed nec risus a metus eleifend sagittis. Aenean had torture lectus. Aliquam varius iaculis curriculum. Aliquam stubborn gravida augue and elementum. Aliquam trestique interdum pretium. Nunc ut selerisk massa, sed venenatis diam. No vehicula luctus odio. Integer ac turpis massa.