Action on minimum wage directive important for purchasing power


A new briefing on the Adequate Minimum Wage Directive (AMWD) argues that its timely implementation would be a key measure to address the cost-of-living crisis. The briefing by the European Trade Union Institute (ETUI) shows that, despite the dynamic developments of minimum wages between 1 January 2022 and 1 January 2023, the nominal increases have not been sufficient to safeguard the purchasing power of minimum wage earners in almost half the countries with a statutory minimum wage. More broadly the ETUI maintains that the directive has the potential to be a gamechanger, with its dual objective of ensuring adequate minimum wages and strengthening collective bargaining. The ETUI believes that the double decency threshold for adequate minimum wages provides a strong benchmark which is already influencing minimum wage setting at national level, even though the Directive has not yet been implemented into national law.

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