How was EU wide minimum wage computed?

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The Politicus
Dec 01, 2021 01:34 PM 0 Answers
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The EU is preparing for rules for fair minimum wages in the EU:

A new draft EU law will ensure a minimum level of wage protection in
all member states, in order to guarantee decent living standards for
workers and their families.

Simply eyeballing the figures from OECD.stats, there is quite a difference between EU states for the minimum relative to average wages of full-time workers. This means that when the minimum wage rule kicks in, states will be impacted differently.

A significant (way more the inflation rate, for example) increase in minimum wage seem to be a very complicated issue and it is hard to understand the effects based on the macroeconomic indicators.

I cannot find the rule for minimum wage computation, but this article (in Romanian, present impact for Romania) suggests that the minimum wage should be 60% of the gross average one. For the specific case of Romania, that would mean a 40% increase that would be observed by almost half the workers.

I am wondering how the EU Parliament reached the 60% figure. Is this a figure that is country-specific?

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  • December 1, 2021