In the following blog, the minimum wages of five different European countries are reviewed and explained. Apart from this sector, there is no evidence of any significant wage changes in Denmark. Table 1: Gross statutory minimum wages, 21 EU Member States, 2021 and 2022 comparedTable 2: Change in monthly minimum wages (%) in collective agreements for 10 low-paid jobs, in nominal terms, 1 January 20201 January 2022Table 3: Addressing low pay in collective bargaining in countries without statutory minimum wagesTable 4: Changes to minimum wage regulations in 2021 for 2022Table 5: Setting of statutory minimum wages for 2022 in countries where the social partners did not reach an agreementTable 6: Policy debates on changes to mechanisms for minimum wage settingTable 7: From minimum to living wage policies new developments in 2021 and early 2022Table 8: Plans to increase minimum wages to bring them closer to median wagesTable 9: Changes in policies affecting net take-home payTable 10: Influence of proposed EU policy on national minimum wage settingTable 11: Latest research on minimum wages in the EU, published in late 2020 and 2021, Table A1: Monthly equivalised basic pay rates from the largest collective agreements covering 10 low-paid jobs, January 2021 and January 2022 (national currencies) Table A2: Monthly equivalised basic pay rates from the largest collective agreements covering 10 low-paid jobs, January 2022 ()Table A3: Change in monthly minimum wages in collective agreements, in real terms and in national currencies, between 1 January 2021 and 1 January 2022, for 10 low-paid jobs (%), Figure 1: Proportion of EU employees earning close to the minimum wage (%), by sociodemographic and employment characteristics, EU, 2018Figure 2: Hourly minimum wages (), 21 EU Member States, 2022Figure 3: Year-on-year change in inflation rates (%), Member States, 2021 and 2022Figure 4: Monthly evolution in inflation, by category, EU, January 2020April 2022Figure 5: Changes in minimum wages in real terms (%), 21 EU Member States, January 2021January 2022Figure 6: Minimum wages in nominal and real terms (), Belgium, January 2020May 2022Figure 7: Collectively agreed average and median monthly wages () in 10 low-paid jobs, January 2022Figure 8: Change in average monthly minimum wages (%) set in collective agreements for 10 low-paid jobs, in nominal and real terms, 1 January 20201 January 2022Figure 9: Minimum wage setting for 2022 and the role of the social partnersFigure 10: Evolution of average wages by wage quintile, Spain, 20092019Figure 11: Relative change in average wages (%) by wage decile, Spain, 2018 and 2019Figure 12: Relative change in wage inequality (%), EU Member States, 2018 and 2019Figure 13: Relative change in average wages (%) by employees sociodemographic and employment characteristics, Spain, 2018 and 2019 Figure 14: Relative change in average wages by wage decile, and change in wage inequality, Spain, 2019 (%), Figure A1: Changes in minimum wages in real terms, selected EU Member States by group, January 2020 to January 2022. Establishing action plans to promote collective bargaining is an important element of the new EU directive on adequate minimum wages and will be a key requirement for Member States. Useful? Based on the level of their national gross monthly minimum wages applicable on 1 July 2022, expressed in , the EU Member States concerned may be classified into three different groups; (see Figure1, non-EU countries are shown separately). The update is dependent on the recommendation of . The minimum wage commission advised increasing the amount steadily which is why the minimum wage will be 10,45 from the 1. of July 2022. On 1 July 2022, minimum wage levels in euro varied on a scale of 1 to 6.4 in the EU (meaning that the highest minimum wage was more than 6 times as high as the lowest one). European Foundation for the Improvement of Living and Working Conditions, The tripartite EU agency providing knowledge to assist in the development of better social, employment and work-related policies, After a cautious round of minimum wage setting for 2021, nominal rates rose significantly for 2022 as the negative consequences of the pandemic eased and economies and labour markets improved. Statutory minimum wage rates were raised across virtually all EU countries for 2022. The rate of pay for those ages 21 to 22 increased from 8.36 per hour to 9.18 per hour in April 2022, while those aged 10 to 20 saw a 27p increase from 6.56 to 6.83. Episode 7Minimum wages 9 June 2022 15m 31s. When expressed in purchasing power standard (PPS), minimum wages in the Member States with lower price levels become relatively higher compared with those in the Member States with higher price levels. India from 01 October 2022 - October 22, 2022; Minimum Wage . 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. Stakeholders participating in the ongoing negotiations in Bulgaria and Spain share these same concerns, which may ultimately affect the outcome of the respective negotiations. The new government drew up plans to further increase the sum up to 12,00 per hour ( 24.958,08 per year). Minimum wages can play a critical role in reducing wage inequality. In October 2020, the Commission responded to these calls by putting forward a proposal for a Minimum Wage Directive. Nevertheless, inflation is back in the picture and should be monitored in the coming months to get an insight into how the increases in nominal minimum wage rates translate into actual changes in the purchasing power of minimum wage earners. 1774 per month. In 2022, while the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees, several states' minimum wage rates will increase. The percentages in the bars refer to the increases in gross statutory minimum wages in national currencies in 2022 (between January 2021 and January 2022) and in 2021 (between January 2020 and January 2021). Faced with growing unemployment, huge economic uncertainty and the disruption of normal negotiation and consultation processes, most European countries settled for rather cautious increases in their statutory minimum wages coming into effect in January 2021. Out now: First 2022 data on minimum wages in the EU. Normal hourly wages 2022 Normal weekly wages 2022 Normal monthly wages 2022 a) If you have been with the company for up to 5 years: 9.26: 370.40: b) If you have been with the company for more than 5 years up to 10 years: 9.34: 373.60: c) If you have been with the company for more than 10 years up to 15 years: 9.35: 374.00: d) On 1 July 2022, 21 out of the 27 EU Member States had a national minimum wage. All candidate and potential candidate countries with a national minimum wage belong to group 2, with minimum wage levels ranging from PPS 401 in Albania to PPS 888 in Montenegro. In January 2022, 13 Member States, located in the east and the south of the EU, had minimum wages* below 1 000 per month: Bulgaria (332), Latvia (500), Romania (515), Hungary (542), Croatia (624), Slovakia (646), Czechia (652), Estonia (654), Poland (655), Lithuania (730), Greece (774), Malta (792) and Portugal (823). As might be expected, this adjustment reduces differences across countries. The minimum annual wage ("minimumloon") for full-time employees over the age of 21 is 20.700 in the Netherlands. receive salaries in 14 months instead of. Hawaii Minimum Wage. In comparison, wage increases are lower in the hotel and restaurant sector, which was very negatively affected by the restrictions implemented to fight the pandemic. In other definitions, it is the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract. For the vast majority of workers in the UK, the minimum wage in 2022 will see increases across the board across each relevant age range. This general picture does not change if minimum wages are calculated in euro terms in those central and eastern European countries outside the euro zone: the marked progress in Hungary is only slightly diminished (16%) due to a modest depreciation in the Hungarian forint versus the euro, while the increase in Czechia becomes stronger (12.5%) due to appreciation of the Czech koruna. When compared to rises a year earlier, the magnitude of the 2022 increases stands out in France and Germany. From January 1st, 2022, the gross minimum wage for full-time employees over the age of 21 has been increased to 1,725 euros a month . Cleaners will see an increase of 3.5% in their minimum wage from 1 January 2022 (3.8% increase in the case of hospital cleaners, bringing them to a minimum wage level of 1,700 per month). This means that these countries, which generally have the lowest statutory minimum wage rates in the EU, are continuing with their significant upward convergence towards the levels of their European partners. As a result, the minimum monthly wage will increase to EUR 1,603.12 on a weekly basis of 35 hours. 10.14. In this context, 20 of the 21 EU Member States with statutory minimum wages raised their rates. Principle 6 of the Pillar on Wages calls for adequate minimum wages as well as for transparent and predictable wage setting to be put in place, according to national practices and respecting the autonomy of the social partners. In addition, when the minimum wage is paid for more than 12 months per year (as in Greece, Spain and Portugal, where it is paid for 14 months a year), data have been adjusted to take these payments into account. National minimum wages expressed in euro, applicable on 1 July 2018, were divided by the median gross earnings measured from the Structure of Earning Survey (SES 2018). New findings indicate that substantial debates among national actors on how to promote collective bargaining and increase bargaining coverage are taking place in only Denmark, Latvia and Norway. Published by Leander von Kameke , Jun 17, 2022. In Cyprus, minimum wages are set by the government for specific occupations. The following conversion is applied: (hourly net rate x 40 hours x 52.2 weeks) / 12 months. 10.95. While group 2 includes Romania, Portugal, Malta, Croatia, Greece, Hungary, Czechia, Estonia, Slovakia, Latvia and Bulgaria. EU countries without a national minimum wage were: Denmark, Italy, Cyprus, Austria, Finland and Sweden. Wage 0 / 197 Gross National Product $174,099.00 USD Denmark has a government-mandated minimum wage, and no worker in Denmark can be paid less then this mandatory minimum rate of pay. Adequate minimum wages in Germany and Europe. To remove the effect of differences in price levels between the countries, special conversion rates called purchasing power parities (PPPs) are used. This will be in effect until the end of 2022, setting wage increases of 2.2% in 2021 and 2.3% from 1 May 2022. As of 12/31/2022. The NLW and NMW rates from 1 April 2022 are: Rate from April 2022. Minimum-Wage.org provides a database of international minimum wage rates and labor law information for countries around the world. The European Parliament is set to guarantee an adequate minimum wage for everybody on the continent, as rising inflation continues to hit citizens hard. Negotiations are ongoing to set the new statutory rate for 2022 in Bulgaria (negotiations are also taking place in Spain and Greece, where further increases are expected). 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. When part-time workers are included in the calculation, their earnings are first converted into full-time equivalents. Medication shortage and price hike warning. The minimum annual wage (minimumloon) for full-time employees over the age of 21 is 20.700 in the Netherlands. The minimum wage is revised every two years and the latest increase occurred in July 2022. Germany, for example, has decided to uprate its minimum wage to 12 per hour, or about 60% of median wages, in October 2022. Based on this, it is possible to distinguish two main groups: group 1 with a national minimum wage above PPS 1 000, and group 2 with a national minimum wage below PPS 1 000. In Italy there is no set national minimum wage or as they call it minimo salariale as the amount depends on the category of the employee as well as the sectors (agriculture, service, industry, etc) and the enrolment level. Europe - 24 Oct 2022, 10:01. Progress has been more moderate in the older EU Member States, where the use of established formulas to set the rates has generally resulted in more modest and predictable increases. WAGES IN EUROPE IN 2022 COUNTRY : Average salary: Minimum salary: Source: 1. It was then 8.50 per hour and has since risen progressively to reach 9.82 per hour on 1 January 2022. The minimum wage in Portugal in 2022 remained fixed at 822.5 per month, that is 9,870 euros per year, taking into account 12 payments per year. Monthly minimum wages vary widely across the Member States, from EUR 363 in Bulgaria to EUR 2313 in Luxembourg (see Figure1). Following this date, research only takes into account the 27 EU Member States (EU28 minus the UK), unless specified otherwise. In Denmark, Italy, Austria, Finland and Sweden, as well as in Iceland, Norway and Switzerland, minimum wages are laid down by collective agreements for a range of specific sectors. In six Member States: Czechia, Croatia and Latvia (all 49%), Spain (44%), Malta (43%) and Estonia (42%), the minimum wages were less than half of the median earnings. The lowest proportion of employees earning less than 105% of the national minimum wage were recorded in Spain (0.8%), Belgium (0.9%) and Malta (1.8%). Within the EU, the resulting ratio ranged from 42% (in Estonia) to 66% (in France), part-time employees included. Their national minimum wages ranged from PPS 1 038 in Lithuania to PPS 1 707 in Luxembourg. This increase was driven by an increase in goods price by 7%. The minimum wage in Germany was introduced in 2015. All in all, it represents an increase of 6.6% compared to the current rates and affects UK workers aged 23 and over. ^ Some discrepancies in the minimum wage growth in 2022 emerge between the figure linked to in the Related content and that presented in this article. They reflect the situation on 1January and 1July of each year. Belarus It is now set to increase to 10.45. While the hospitality sector was subject to lockdowns, loss of jobs and loss of profits, delivery services across the board experienced a huge increase in demand. Only then can real minimum wage rates for 2022 be observed (calculated as nominal minimum wages deflated by national price indexes). Germany, for example, has decided to uprate its minimum wage to 12 per hour, or about 60% of median wages, in October 2022. Eurofound, Wyattville Road, Loughlinstown, Co. Dublin, D18 KP65, Ireland Similarly, no significant changes in negotiated wage levels emerge in Sweden, whose last significant round of collective bargaining was carried out in 2020. Two main points emerge from the data. This information comes fromdataon minimum wages published by Eurostat today. What is the UK Minimum Wage in 2022? 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. Average exchange rates for 2018 were used to convert data for non-euro area countries into euro. Based on inflation data for the end of 2021, it is safe to assume that many of the large increases in nominal minimum wage rates described here will not translate into significant improvements in the purchasing capacity of minimum wage earners. Based on their levels in euro, those 21 Member States can be divided into three main groups. In Slovenia (1 074) and Spain (1 126) minimum wages ranged just over 1 000 per month, while in the remaining six Member States, minimum wages were above 1 500 per month: France (1 603), Germany (1 621), Belgium (1 658), the Netherlands (1 725), Ireland (1 775) and Luxembourg (2 257). Their complaints focused on issues such as unequal pay, extra workload and additional demands imposed during the pandemic. The amount depends on the age as well as the business which is why the amount can differ. Employment Change. Eurofound (2022), Minimum wages in 2022: Annual review, Minimum wages in the EU series, Publications Office of theEuropean Union, Luxembourg. (*Montenegro has unilaterally adopted the euro as the national currency), Variations in minimum wages are considerably smaller after adjusting for differences in price levels. The government of France increased the minimum hourly wage to EUR 10.57 per hour. The new law - once finally adopted - will promote the adequacy of statutory minimum wages and thus help to achieve decent working and living conditions for European employees. As it is currently announced, there will be no increase in the national minimum wage in 2022. portugal is 705 euros. The calculations are based on the assumption of a 40-hour working week and a 52-week year, with the exceptions of France (35 hours), San Marino (37.5 hours), Belgium (38 hours), United Kingdom (38.1 hours), Ireland (39 hours), Monaco (39 hours), and Germany (39.1 hours). Countries not covered by minimum wage statistics. On 23 July 2021, a draft regulation containing a proposal to increase the minimum wage for 2022 was published. The commission should then decide if it needs more adjustment. 2 Section O). Luxembourg has the highest minimum wage in Europe. Towards a new Minimum Wage Policy in Germany and Europe: WSI minimum wage report 2022. This positive outlook for nominal rates will become more nuanced once inflation data for 2022 and progress in real rates are taken into account, providing a full picture of the changes in the purchasing power of minimum wage earners. Giuseppe Sabella, director of Oikonova: "Before we had a Meloni who opposed the minimum wage, considering it a problem for companies. In July 2022 the minimum wages in the EU Member States ranged from 363 per month in Bulgaria to 2 313 per month in Luxembourg.

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