The methodolgy section gathers sources and explanations for the headlines indicators.

Statutory Minimum Wage?

Does your country have a statutory minimum wage? (yes or no). For Statutory it is intended “set by law”.

Hourly Minimum Wage (€)

In countries where MW  are expressed in monthly pay (or weekly - MT), the amount is converted into hourly rates based on the average collectively agreed number of working hours per month, as provided by Eurofound (2023), or most recent data available. For non-euro countries, the values were converted to Euro by applying the exchange rate applicable at the end of the previous reference month (December 2023). Rates for countries with more than 12 wage payments per year (Greece, Portugal, Slovenia and Spain) were converted by dividing the annual sum of the minimum wage by 12 calendar months.

Monthly Min. Wage (€) 

In countries in which the minimum wage is not explicitly set per month, the calculation of the monthly minimum wage is based on the hourly rate multiplied with the average collectively agreed number of working hours per month (full time equivalent). Or most recent data available.

Minimum Wage as % Gross Median Wage (2023)

Under the Directive, Member States are required to use indicative reference values when assessing of the adequacy of statutory minimum wages: 60% of the gross median wage. The data is based on the OECD Earnings Database (2024); for Malta and for Bulgaria the data was taken from Eurostat (2024). For Bulgaria the most recent figure available at Eurostat was for 2018.

Minimum Wage as % Gross Average Wage (2023)

Under the Directive, Member States are required to use indicative reference values when assessing of the adequacy of statutory minimum wages: 50% of the gross average wage. The data is based on the OECD Earnings Database (2024); for Malta and for Bulgaria the data was taken from Eurostat (2024).

Nominal Growth Rate of Minimum Wages (2023-2024)

Development from January 2023 to January 2024 based on national currencies.

Real Growth Rate of Minimum Wages (2023-2024)

Development from January 2023 to January 2024 based on national currencies. The calculation is based on the annual average of Eurostat's harmonized index of consumer prices.

Proportion of employees earning the Minimum Wage

Proportion of employees earning the Minimum Wage (%, based on Eurostat 2018). The proportion of employees earning the minimum wage can vary considerably across countries. 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). For the sake of comparability, the scope has been restricted to full timers and part-timers — converted into full time units), aged 21 years and over, working in enterprises with 10 employees and more, excluding public administration, defence and compulsory social security (NACE Rev. 2 Section O). Moreover, monthly earnings calculated from the SES 2018 exclude any earnings related to overtime and shift work.

Automatic indexation of adjustments

An indexation mechanism links the development of minimum wages to the development of other indicators such as inflation or negotiated wages.

Minimum Wage setting procedure

This indicator refers to the mechanism used to set the minimum wage involving indexation, unilateral government decisions and different kinds of trilateral and bilateral negotiations with or without the involvement of expert commissions.

Criteria guiding adjustment of Minimum Wage

The Directive specifies the following criteria for the adjustment of minimum wages: purchasing power of statutory minimum wages taking into consideration the cost of living, general level of wages and their distribution, growth rate of wages and long-term productivity levels and their developments.

Variations from statutory Minimum Wage

Variations refer to the fact that Member States may allow for different rates of statutory minimum wages for specific groups of workers such as in particular young workers.

Consultative body on statutory Minimum Wage and social partner involvement

The Directive requires Member States to involve the two sides of industry into the setting and updating of statutory minimum wages in a timely manner which involves the establishment of consultative bodies such as low-pay or minimum wage commissions or other tri- and bipartite structures whose advice can be but does not need to be binding.

Gender Pay Gap

The unadjusted gender pay gap is calculated as the difference between the average gross hourly earnings of male and female paid employees as a percentage of average gross hourly earnings of male paid employees (latest data Eurostat, 2022).

In-work poverty rate

In-work at-risk-of-poverty rate refers to the percentage of persons, who declared to be employed or self-employed, being at risk of poverty (i.e. with a disposable income below the threshold, set at 60 % of the national median disposable income after social transfers) (latest data Eurostat, 2023).

Wage inequality (inter-decile Ratio P90/P10)

The P90/P10 inter-decile ratio is the ratio of the upper bound value of the ninth decile (i.e. the 10% of people with highest wage level) to that of the first decile (i.e. the 10% of people with lowest wage level) (OECD Stat, 2022).

Collective Bargaining Coverage 

Collective Bargaining coverage is measured as the share of employees covered by a collective agreement (in percent) of the number of employees with the right to bargain (OECD/AIAS ICTWSS database, 2021 or most recent year available – for DE source is IAB 2024; for NL, source is De Burcht 2024; for ES source is Spanish Ministry for Labour and Social Economy 2024).

Predominant level at which wage bargaining takes place (in terms of coverage of employees)

Collective bargaining can take place at several levels: cross-sectoral, sectoral or company/enterprise level. The predominant level is measured in terms of coverage of employees by collective agreements at the various levels.

Extension Mechanism

Extension mechanisms refer to the rules that ensure that a collective agreement also applies to companies and employees who are not  a member of the signatory parties to the agreement (i.e. trade unions and employers' associations).

Validity of Collective Agreements after expirations?

Are the collective agreements in your country still valid beyond their expiration? (yes or no)

Exclusion of groups of employees from collective bargaining

In some countries certain groups of employees (for instance civil servants or solo self-employed) do not have the right to collective bargaining.

Trade Union Involvement in Action Plan drafting

The Directive's requirement to establish an action plan to promote collective bargaining includes the obligation of timely and meaningful involvement of trade unions (based on info from affiliates).

Trade Union Density

Trade union density is measured as the share of employees who are a member of a trade union (in percent) of the overall workforce (OECD/AIAS ICTWSS database, 2019 or the most recent year available)

Collective bargaining clauses in Public Procurement

This category refers to clauses which ensure that public contracts are awarded only to those companies which provide collectively agreed wages and which respect the workers' right to bargain collectively.

Call to introduce or strengthen sectoral system of collective bargaining

The Directive explicitly requires Member States to strengthen (cross-)sectoral bargaining because countries with a bargaining coverage of 80% and more are characterized by well-developed sectoral bargaining systems.

Right of Access to workplace (also digitally)

The trade union right of access to companies is an important tool to increase bargaining coverage by strengthening the trade unions' capacity to act. This right can be granted either by law or by collective agreements and it either covers only companies where there is a union presence or all companies.

Protection of workers and trade union representatives against dismissal/discrimination

Article 4(1) of the Directive stipulates that the Member States must take measures to protect the exercise of the right to collective bargaining and to protect these workers and union representatives from discrimination on the grounds that they participate or wish to participate in collective bargaining on wage-setting.

Financial incentives for union members

One way to increase collective bargaining coverage by strengthening the unions' capacity to act is by providing financial incentives for workers to become a trade union member. This can take different forms which are set out in this category.

Presence of employers’ federation(s) with negotiating mandate

One important reason for low collective bargaining coverage is the fact that there are no sectoral employers' associations as a negotiation partner of trade unions. Or where they exist they often do not have a negotiation mandate. Thus, promoting the establishment of sectoral employers' associations with a negotiation mandate is another important tool to increase bargaining coverage.

Obligation for employers to engage in sectoral bargaining

One principal reason for low bargaining coverage is the fact that employers and their associations are not willing to engage in negotiations with trade unions. An obligation for employers to engage in meaningful negotiations with trade unions could help to increase collective bargaining coverage.

Did your country start the process of transposition?

Concerning either the Minimum Wage settings or the Collective Bargaining systems.
Monitored and categorised as: N/A; Assessment of current situation completed: no actions required; Not started; Discussion / preparation ongoing; Draft Legislation published; Parliamentary discussion started; Transposed.