The European Trade Union Institute suggests that prospects for a European minimum wage could move up the political agenda when Germany takes over the EU Presidency next year. The German government has indicated its support for a debate on the issue which is supported by the DGB, the national confederation. A new report by the trade union-backed WSI research institute confirms that there have been significant increases in several minimum wage rates across Europe but that the majority of countries still have rates that are well below the 60% median wage target,
European minimum wage policy could move up agenda
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Private childcare workers saw a 3% increase in the sector minimum wage from 1 January. The increase was negotiated by the vida and GPA-djp service trade unions with the Federal Arbitration Office. The increase takes the lowest wage level above EUR 1500 for the first time, reaching EUR 1514. There is also a provision to ensure that special payments continue to be fully paid in cases of long-term sickness or accidents at work. The unions are pleased that this is a good deal for the 10000 workers in the sector, the vast majority of whom are women.
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.