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Minimum wage

The term ‘minimum wage’ refers to the regulatory restriction on the lowest rate payable by employers to workers. Statutory minimum wages are regulated by formal laws or statutes. Collectively agreed minimum wages are stipulated within collective agreements between trade unions and employers. The term ‘national minimum wages’ is used when countries have one (or more) basic rates covering workers nationwide. They can be either statutory or collectively agreed.

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Research report

21 July 2025

Minimum wages in 2025: Annual review
Felix Applerand 2 other authors

This year’s report presents the minimum wage rates for 2025 and how they were set and uprated during 2024. It includes information on countries with and without national minimum wages. In addition, it provides the first comparative overview of how Member States have transposed the Minimum Wage Directive and presents new estimates of the proportion of minimum wage earners and their ability to afford housing. Finally, it summarises research on minimum wages published during 2024.

Article

23 June 2025

Minimum wages have a significant effect on negotiated and actual wages
Christine Aumayr-Pintar,
Carlos Vacas‑Soriano
In recent years, national minimum wages have risen sharply across EU countries, making their influence on collective wage bargaining and general wage developments increasingly relevant. The findings show that national minimum wages have a positive impact on raising negotiated wage levels. However, careful policy design is required to avoid the crowding-out of collective bargaining, especially in low-paid sectors. Minimum wages also play a key role in improving wage levels among the lowest-paid employees, although spillover effects occur across the wider wage distribution.
Research report

23 June 2025

Impact of national minimum wages on collective bargaining and wages for low-paid workers
+2
Enrique López-Bazoand 5 other authors

Increases in national minimum wages can have various knock-on effects – they can, for instance, lead to wage rises more generally and can influence the social partners’ latitude in collective bargaining. This report examines how changes to national minimum wages affect collectively agreed and actual wages in selected low-paid jobs and sectors. A quantitative analysis uses the Eurofound database on minimum wages for low-paid workers in collective agreements to analyse the impact of national minimum wages on collectively agreed minimum wages. Data from European Union Statistics on Income and Living Conditions are used to analyse the impact of national minimum wages on actual wages.

A qualitative analysis is based on national case studies of the residential and social care and the manufacture of food and beverages sectors in six Member States: France, Germany, Portugal, Romania, Slovenia and Spain. These Member States were selected because they differ in terms of the interaction between national minimum wages and collectively agreed wages. The analysis finds that, generally, there is a positive association between national minimum wage uprates and changes to both actual and negotiated wages in low-paid sectors, although there are differences among the countries.

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21 July 2025

Research report

Minimum wages in 2025: Annual review

This year’s report presents the minimum wage rates for 2025 and how they were set and uprated during 2024. It includes information on countries with and without national minimum wages. In addition, it provides the first comparative overview of how Member States have transposed the Minimum Wage Directive and presents new estimates of the proportion of minimum wage earners and their ability to afford housing. Finally, it summarises research on minimum wages published during 2024.

26 January 2024

Research report

Minimum wages for low-paid workers in collective agreements

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.

See also the national country reports (Eurofound papers), providing meta-data for the data collection, at the end of this web page.

27 November 2023

Research report

Minimum wages: Non-compliance and enforcement across EU Member States – Comparative report

In the EU, non-compliance with statutory or negotiated minimum wages averages 6.93% or 1.3%, depending on the statistics used. The lowest national estimate is 0.01% in Belgium and the highest is 11.59% in Hungary. It mostly affects young workers, those on fixed-term or part-time contracts and those working for small companies. It is more common in services than in manufacturing, and is characterised by shorter working time. Member States monitor, enforce and promote compliance in similar ways, although with some differences. This report identifies hindering and enabling factors. Some countries focus on specific economic sectors, such as construction, domestic work, platform work, agriculture and meat processing. National authorities often enforce minimum wages indirectly by helping employers comply, raising workers’ awareness, and helping stakeholders increase cooperation and develop faster procedures. Combining these soft initiatives with tougher measures increases the effectiveness of inspectorates’ actions in enforcing compliance with minimum wages.

30 November 2022

Research report

Regulating minimum wage and other forms of pay for the self-employed

This report is carried out in the context of the three-year pilot project (2021–2023), ‘Role of the minimum wage in establishing the Universal Labour Guarantee’, mandated to Eurofound by the European Commission. Its focus is module 3 of the project, investigating minimum wages and other forms of pay for the self-employed. Out of concern for the challenging conditions faced by certain groups of self-employed workers, some Member States have established or are in discussions about proposing some statutory forms of minimum pay for selected categories of the self-employed. The main objective of the report is to understand how minimum wages, wage rates, tariffs, fees and other forms of pay could be fixed for specific jobs or professions in sectors having a high level of ‘vulnerable’ workers, as well as ‘concealed’ self-employed. While the majority of Member States allow trade union representation, the right to collective bargaining for the self-employed is much more limited. Only a small number of Member States provide examples of collectively agreed minimum wages or other forms of pay for the self-employed.

15 June 2022

Blog post

How to ensure adequate minimum wages in an age of inflation

Minimum wages have risen significantly in 2022, as the EU Member States leave behind the cautious mood of the pandemic. However, rising inflation is eating up these wage increases, and only flexibility in the regular minimum wage setting processes may avoid generalised losses in purchasing power among minimum wage earners. On 6 June 2022, the Council of the EU and the European Parliament reached a political agreement on the Directive on adequate minimum wages proposed by the Commission in October 2020. Once formally approved, EU Member States will have to transpose it into national law within two years.

22 January 2020

Publication series

Minimum wages in the EU

This series reports on developments in minimum wage rates across the EU, including how they are set and how they have developed over time in nominal and real terms. The series explores where there are statutory minimum wages or collectively agreed minimum wages in the Member States, as well as minimum wage coverage rates by gender.  eurofound.link/efs027

Experts on Minimum wage

Researchers at Eurofound provide expert insights and can be contacted for questions or media requests.

Carlos Vacas‑Soriano

Senior research manager
Employment research

Carlos Vacas Soriano is a senior research manager in the Employment unit at Eurofound. He works on topics related to wage and income inequalities, minimum wages, low pay, job quality, temporary employment and segmentation, and job quality. Prior to joining Eurofound in 2010, he worked as a macroeconomic analyst for the European Commission and as a researcher in European labour markets at the Spanish Central Bank. He holds an MA in European Economic Studies from the College of Europe in Bruges and a PhD in Labour Economics from the University of Salamanca (Doctor Europaeus).

Christine Aumayr-Pintar

Senior research manager
Working life research

Christine Aumayr-Pintar is a senior research manager in the Working Life unit at Eurofound. She coordinates Eurofound’s research on social dialogue and industrial relations and oversees the Network of Eurofound Correspondents (NEC). Her primary research expertise – approached from a comparative EU-wide standpoint – centres on minimum wages, collectively negotiated pay and gender pay transparency. Prior to joining Eurofound in 2009 she was a labour markets and regional economics researcher at Joanneum Research in Austria. She earned a Master's degree in Economics and a PhD in Social Science/Economics having studied economics in Graz, Vienna and Jönköping.

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