The Eurofound research agency’s overview of minimum wage increases in 2021 finds lower increases than in 2020 but still with six countries in Central and Eastern Europe – Latvia, Slovenia, Poland, Slovakia, Bulgaria and Lithuania – increasing rates by over 5%. Increases of 1%-5% were recorded in 11 Member States while rates were frozen in Belgium, Spain, Greece and Estonia. However, the cross-sector negotiations in Belgium recently included a commitment to increase the minimum in stages over the next six years. The median increase this year across Europe at 3% is well below the 8.4% figure for 2020.
Central and Eastern Europe leads minimum wage growth
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A new report from the WSI trade-union linked research organisation provides an overview of recent developments in statutory minimum wages with 19 of the 22 in the EU seeing an increase in 2017 or beginning of 2018 - the exceptions being in Greece, Germany and Luxembourg.The 4.4% average nominal increase is the second largest since 2009. The report found that most of the larger increases were in Central and Eastern Europe. In Western Europe the minmum wage rate was mainly above EUR 9.40 an hour with the exceptions of the UK and Germany.
The monthly and hourly minimum wage rates are set to rise by just over 9%, taking the monthly amount to EUR 607 and the hourly rate to EUR 3.72. The minimum wage is discussed in a tripartite council which takes into account a number of factors but the increases are also linked to specific targets - since 2017 it was stipulated that the ratio of the minimum wage to the average wage should be kept between 45% and 50%. It is also linked to trends in minimum and average wages across the European Union.
(February 2017) The Eurofound research agency has published a new analysis of minimum wage rates across the EU noting the increase in rates, particularly across Eastern Europe. The article confirms, however, that there is still a wide range of rates across the continent, ranging from EUR 1999 in Luxembourg to EUR 238 in Bulgaria. Of the 22 EU countries with statutory minimum wages all have seen an increase in real terms since 2010 with the exception of Greece where the Troika pressured a previous government to cut the rate substantially.