Monthly minimum wages below 1 000 in 13 EU countries, above 1 500 in 6. It is now set to increase to 10.45. 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). Minimum wages, July 2022 and July 2012 (EUR per month and %) Source: Eurostat (earn_mw_cur) Median earnings is the level of earnings which divides all employees into two equal groups: half earn less than the median and half earn more. For this reason, the threshold used to estimate the proportion of minimum wage earners includes a 5% mark-up.). The new government coalition wants to raise the statutory minimum wage to 12 euros per hour in Germany. Fortunately, the UK minimum wage is increasing from April 2022, bringing the pay of millions of workers up to 9.18 an hour. hbspt.cta._relativeUrls=true;hbspt.cta.load(5847593, 'ea23ff0d-5ecd-4b36-905e-aa9be49cbd7e', {"useNewLoader":"true","region":"na1"}); Many companies are struggling with many different employment laws in various European countries and that stops them from expanding their HR services in Europe. Hawaii Minimum Wage. A complete set of country-specific information on national minimum wages is available in an annex as part of the metadata. (*Montenegro has unilaterally adopted the euro as the national currency), Variations in minimum wages are considerably smaller after adjusting for differences in price levels. 2020 - 2022 EuroDev European Business Development Group. By linking microdata from the Structure of earnings Survey (SES2018) with the level of minimum wages in force at the time (reference date: 1 July 2018), it is possible to derive an estimate of these proportions (as presented in Figure 4). The commission should then decide if it needs more adjustment. The US bank hiked its minimum wage to $20 an hour - up from $17 an hour - in March 2020. . In a nutshell, on the adequacy of wages, Europe asks member states to intervene (within two years from the effectiveness of the . The minimum wage, as seen in the map, shows great differences among countries. Although it has not yet impacted greatly on the evolution of statutory minimum wages and wage negotiations between the social partners, it has started to feature in this years minimum wage bargaining processes and will certainly become more prominent in the months to come if current trends persist. 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. 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. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). However, there seems to be little evidence on how these issues affected the collectively agreed wages in countries without a statutory minimum wage. 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. Continue reading. 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. This is likely to have been a result of the minimum wage increase, which counteracted the high level of wage inequality in Spain, a gap that had grown in the year before the hike. KENYA REVISED MINIMUM WAGES - 2022 on June 17, 2022 A Minimum Wage is defined as the lowest remuneration that employers can legally pay their employees. The United States (PPS 920) belong to group 2. 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. + 353 1 2043100, Eurofound is an agency of the European Union. Spain Beginning January 1st, 2022, Spain's gross monthly minimum wage will be raised by 3.6% to 1,000 euros, paid in 14 payments with an extra payment in the summer and Christmas as is standard in the country. You can report the issue here. Netherlands Raises Minimum Wage for the second half of 2022 - June 24, 2022 The monthly minimum wage paid to workers in the Netherlands who are at least aged 21 years has increased from 1 July 2022 to 1756 euros, up from 1725 euros. This increase was driven by an increase in goods price by 7%. The minimum wage will increase again from 1 January 2020, when it will be set at 9.35. 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%). The new government drew up plans to further increase the sum up to 12,00 per hour ( 24.958,08 per year). Finally, Greece and Spain improved their statutory rates by only around 2%, although things are projected to improve further during the year. 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. However, the disparities are considerably smaller once price level differences are taken into account. And to get even more in depth, I live in Denver and Denver's minimum wage is $15.87 per hour. As a consequence, modifications to minimum wages introduced between these two dates are only shown for the following bi-annual release of data. Another 93 have between 1 and 100 different Minimum Wages. Germany, for example, has decided to uprate its minimum wage to 12 per hour, or about 60% of median wages, in October 2022. 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. Inflation in Poland was 13.9% in May, according to a flash . This is reflected in Figure 1, which presents data on gross statutory minimum wages in national currencies and their progress in 2022 compared to 2021. 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. at the moment the minimum wage in. Stakeholders participating in the ongoing negotiations in Bulgaria and Spain share these same concerns, which may ultimately affect the outcome of the respective negotiations. Minimum wage, Meloni opens to the EU directive. This means that it will only be possible to get a complete picture of minimum wage developments across EU countries when updated inflation data for January 2022 are taken into account (this information was not available at the time of writing). Council and Parliament reached a provisional agreement on the new rules in June 2022. Footnotes The proposed EU directive on adequate minimum wages is already prompting a few Member States to refocus debates on the topic and prepare for change in areas such as setting the criteria for wage setting or raising wages in line with the international reference values mentioned in the proposal. Against the background of low inflation existing in recent years in most EU countries, even moderate increases in nominal rates generally signalled improvements in real rates as well. This table provides a summary comparision of international minimum wage rates with a calculated yearly minimum wage rate for each country in International Dollars, a measure of currency based on the United States dollar in 2009. NMW NMW France 1,554.6 1,907.6 Contents1 What is a good salary in Paris France?2 What is the minimum wage in [] 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). This was the second increase in wages in 2022. 13 countries specify Minimum Wage Rates for more than a 100 different categories of workers. The past year has seen a much higher political profile for the issue of minimum wages, not only in Germany, which has seen fresh initiatives to tackle low pay, but also in those many other countries in Europe that have embarked on substantial and sustained . Labour. The table below lists the current prevailing 2022 minimum wage rates for every state in the United States. After collective bargaining was suspended in 2020, a new agreement was negotiated between the social partners in February 2021. Minimum wage statistics, as published by Eurostat, refer to national minimum wages. In contrast to the rather cautious increases agreed for 2021, the minimum wage hikes negotiated for 2022 have been much more generous, following the recovery in European economies and labour markets. As an employer, it is important to keep an eye on the minimum wage as it influences the costs of the firm, especially when there is a presence in multiple countries with different legal systems with distinct employment laws. PPPs for household final consumption expenditure in each country are used to convert the monthly minimum wages expressed in euro or national currencies to an artificial common unit called the purchasing power standard (PPS). The proportion of employees earning the minimum wage can vary considerably across countries. All rights reserved. Effective is better since more than half of American states have a minimum wage higher than $7.25 per hour. While its influence on collectively agreed wages has been limited so far in some countries (for instance, the next collectively agreed round in Denmark will only be able to take this issue fully on board from 2023, and in Austria the inflation rate prevailing during the 12 months prior to the start of the first collective bargaining round will be taken as a reference rate by the social partners), this is likely to change if inflation pressures persist. In France, the minimum annual wage is 19.237,44 since the 1. of January 2022. If present inflation trends continue, minimum wages will barely grow at all in real terms in any country in 2022. In Belgium and Spain, statutory rates remained frozen for most of 2021 and were increased only in September, so these increases have been only considered when calculating the rate of increase for 2022 (that is, between January 2021 and January 2022), not that for 2021. . Minimum wages in the EU Member States ranged from EUR 363 per month in Bulgaria to EUR 2313 per month in Luxembourg. Smaller gaps in minimum wages once price level differences are eliminated. 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. By eliminating price differences, minimum wages ranged from 604 PPS per month in Bulgaria to1 707 PPS in Luxembourg, meaning that the highest minimum wage was almost 3 times higher than the lowest. The minimum wage is revised every two years and the latest increase occurred in July 2022. This contrasts with the relatively large increases in minimum wages in these three countries in 2021, especially in Latvia, which recorded the largest increase in the EU in 2021. Last years report described how the pandemic dominated the minimum wage setting agenda, since the negative consequences of COVID-19 in European economies and labour markets brought about a great deal of uncertainty and even disrupted the normal process of bargaining negotiations. SubstantRead more. Given that the healthcare sector has been particularly affected by the pandemic, there has been huge demand for wage increases. Minimum Wage In Poland In 2022. We will investigate the issue. We explain all you need to know about the federal minimum wage Credit: Alamy. October 9, 2021 tamar. Its current inflation levels, the highest in decades, will affect future rises and has sparked a debate on the minimum wage in the parliament. The minimum wage commission advised increasing the amount steadily which is why the minimum wage will be 10,45 from the 1st of July 2022. For the salaire minimum in France, it is important to keep in mind that an average working week has 35 hours and not 40 hours such as other European countries reviewed in this blog. Luxembourg has the highest minimum wage in Europe. The national minimum wages for this group ranged from PPS 604 in Bulgaria to PPS 949 in Romania. In Denmark, nurses held a 10-week strike in summer 2021 to protest at the conditions set out in the renewal of their collective agreements. Following this date, research only takes into account the 27 EU Member States (EU28 minus the UK), unless specified otherwise. It is enforced by law, often after consultation with social partners, or directly by a national intersectoral agreement. Towards a new Minimum Wage Policy in Germany and Europe: WSI minimum wage report 2022. ^ 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. As of 1 January 2022, 21 out of the 27 EU Member States have national minimum wages, making Denmark, Italy, Cyprus, Austria, Finland and Sweden the exceptions. Current rate (April 2021 to March 2022) Increase. Minimum wages expressed in purchasing power standards, Minimum wage levels in relation to median gross earnings, Minimum wage statistics: tables and figures, directive of the European Parliament and of the Council on adequate minimum wages in the European Union, Statistics on employment characteristics of households, Labour market statistics at regional level, Eurofound European Industrial Relations Observatory (EIRO), https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Minimum_wage_statistics&oldid=573294. + 353 1 2043100, Eurofound is an agency of the European Union. The so-called salario mnimo interprofesional is adjusted by the Ministry of Employment and Social Security once a year. As it is currently announced, there will be no increase in the national minimum wage in 2022. One year later, although the negative consequences of the pandemic are still visible, European economies and labour markets are recovering. The year 2022 can once again become a year of the minimum wage. 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. Minimum-Wage.org provides a database of international minimum wage rates and labor law information for countries around the world. The update is dependent on the recommendation of . The United States falls within group 2 ( 1210 per month, at federal level). In the health and care sector, frontline workers faced multiple challenges arising from the pandemic, such as higher workloads, staff absences, more stringent hygiene requirements and mental stress. The most pronounced increase is in Germany, where the minimum wage is set to rise to 12 per hour in October 2022, reflecting a 25% increase compared with the December 2021 level (9.60). Labour Minister Hubertus Heil said the law will particularly benefit . Within the EU, the resulting ratio ranged from 42% (in Estonia) to 66% (in France), part-time employees included. 10.95. Monthly gross minimum wage Monthly minimum wage Hourly rate Exchange rate Effective per Foo 10 10 10 October 2000 Belgium: 1,806.16 1,806.16: 10.97 1 1 April 2022 Bulgaria: 362.97 710 lev (minimum wage is fixed at an hourly rate) 2.07 1.95583 1 April 2022 Croatia: 627.76 4,687.50 kuna: 23.44 kuna 7.5345 1 January 2022 Cyprus You can find a list of highest and lowest minimum wage rates here . workers in portugal with work contracts. While four countries (Belgium, Estonia, Greece and Spain) opted to freeze their statutory rates in early 2021, these rates were frozen for just one country (Latvia) between January 2021 and January 2022. As of 1January 2021, there was no national minimum wage in Denmark, Italy, Cyprus, Austria, Finland and Sweden; this was also the case in the EFTA countries of Iceland, Norway and Switzerland. !function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r
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