The European Minimum Wage on the Doorstep

7 Pages Posted: 6 Feb 2020

See all articles by Torsten Müller

Torsten Müller

European Trade Union Institute (ETUI)

Thorsten Schulten

Hans-Boeckler-Stiftung

Date Written: February 5, 2020

Abstract

The European Commission published a consultation document with a view to take legislative action to establish fair minimum wages in Europe. In this policy brief, the researchers argue for a pragmatic approach of taking the ‘in-work-poverty-wage’ threshold of 60 per cent of the national full-time gross median wage as the reference to assess the adequacy of minimum wages. In countries in which a high proportion of workers earn very low wages, the whole wage structure, and therefore the median wage, is very low; therefore, a minimum wage of 60 per cent of the national median wage may still not be enough to ensure a decent living standard. The Commission initiative should, therefore, include an obligation to subject the 60 per cent target to a real-life test by examining, for instance on the basis of a country specific basket of goods and services defined with the full involvement of trade unions and employers’ organisations, whether a minimum wage of 60 per cent of the national median wage really amounts to a wage that ensures a decent living standard.

Keywords: minimum wage; EU legislation; EU countries

Suggested Citation

Müller, Torsten and Schulten, Thorsten, The European Minimum Wage on the Doorstep (February 5, 2020). ETUI Research Paper - Policy Brief 1/2020, Available at SSRN: https://ssrn.com/abstract=3532424 or http://dx.doi.org/10.2139/ssrn.3532424

Torsten Müller (Contact Author)

European Trade Union Institute (ETUI) ( email )

B-1210 Brussels
Belgium

Thorsten Schulten

Hans-Boeckler-Stiftung

Straße 39
Düsseldorf, 40476
Germany

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