Documents Seghesio, Marco 2 results

"The 2023 annual review of minimum wages was prepared in the context of unprecedented inflation across Europe. While this led to hefty increases in nominal wage rates in many countries, it was in many cases not enough to maintain workers' purchasing power. Based on developments over the last decade, this report shows that, overall, minimum wage earners in nearly all countries saw their purchasing power rising, the gap between their wages and average wages narrowing, and to some degree growth exceeding labour productivity development. Despite the short-term losses in real terms, these longer-term gains did not disappear in 2023. Even in the context of rising inflation, the processes of wage setting did not change substantially. But the early impacts of the EU directive on adequate minimum wages are noticeable, with more countries electing to use the international ‘indicative reference values' mentioned in the directive – 50% of the average or 60% of the median wage – when determining their targets for new levels. This year's report presents, for the first time, an in-depth insight into net minimum wages for single adults, through the EUROMOD tax–benefit microsimulation model, while presenting the latest research findings on minimum wages, published during 2022."

"In this pilot project, Eurofound successfully established the feasibility of, and piloted, an EU-wide database of minimum pay rates contained in collective agreements related to low-paid workers. A conceptual and measurement framework was devised, a total of 692 collective agreements – related to 24 low-paid sectors of interest – were selected to be ‘fully coded' and representative data on negotiated minimum pay were compiled for 24 EU Member States. Based on more than 3,202 renewal texts, time series of collectively agreed minimum rates were created from 2015 to 2022 for 19 countries. This is the first time that an EU-wide data collection has provided comparative time series on negotiated pay. Key findings are is that in some countries outdated agreements contain rates below the applicable statutory minima, and that the potential of collective agreements to regulate pay generally or for employees earning higher wages than the minimum pay is not always fully capitalised on."