EU introduces new rules on minimum wage

The EP General Assembly, which came together in Strasbourg, discussed the legal regulation that brings new rules to minimum wages in EU countries.

MEPs approved the law, which aims to popularize collective bargaining agreements and raise minimum wages, with 505 “yes”, 92 “no” and 44 “abstentions” votes.

By law, setting minimum wages will continue to be the jurisdiction of member states.

Member states will have to set national minimum wages taking into account the cost of living and wider wage levels. It will be ensured that the minimum wages applied are sufficient for the workers to live in humane conditions.

The adequacy of the minimum wages in the countries will be evaluated.

A basket of goods and services at real prices can be used for qualification assessment. The determination of wages through collective bargaining will be encouraged.

IMPLEMENTATION ACTION PLAN WILL BE PREPARED

Action plans will be prepared to expand the application of collective bargaining in countries where the collective bargaining agreement determines the wages of less than 80 percent of the employees.

EU countries will strictly control and impose sanctions against abused subcontracting, self-employment and unregistered overtime.

EU countries where wages are determined only through collective bargaining agreements will be exempt from these rules.

The new rules will enter into force after a 2-year transition period, following the approval of the European Council. 21 of the 27 EU member states have minimum wages.

In Denmark, Italy, Greek Cypriot Administration (GCA), Austria, Finland and Sweden, wages are determined as a result of collective bargaining negotiations.