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.
Substantial increase in minimum wage
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Spain, Greece and Bulgaria top minimum wage increases
The Eurofound research agency has published a short analysis of recent minimum wage increases ahead of its more detailed annual report. The largest increases were recorded in Spain (+22% to €1,050), Greece (+11% to €758, 14 payments of EUR 650) and Bulgaria (+10% to €261). However, in Greece, it represents only the first increase since 2012 when the rate was slashed as part of austerity measures. Lithuanian workers saw a rise of 7.5% but with changes to taxation the take home pay of those on the minimum wage has risen by 39% (to €555).
Upward trend in minimum wages
(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.
Minimum wages need major boost
A new report from the ETUC, as part of its Pay Rise campaign, shows that minimum wage rates across Europe need to rise significantly just to reach an official measure of low pay (60% of the national median wage as used by the Organisation for Economic Co-operation and Development). Minimum wages in Estonia, Czech Republic and Spain need some of the largest increases to reach the low pay threshold - 46%, 51% and 62% respectively. The ETUC argues that national governments need to sit down with trade unions and employers to discuss how to reach the target.