According to Eurofound's analysis by Christine Aumayr-Pintar, after a challenging year with rising prices and declining purchasing power, 2024 marks a turning point with significant increases in minimum wages across most EU Member States, outpacing inflation.

According to Eurofound's analysis, this optimistic trend in minimum wage adjustments is a result of concerted efforts by wage setters, who have prioritised addressing the impact of recent price trends. Moreover, the implementation of the directive on adequate minimum wages, which must be transposed by November 2024 as we reported here, has started to influence national policies, leading to more substantial wage increases.

In some Member States, automatic indexation mechanisms trigger wage increases in response to rising prices, directly impacting labour costs. In others, wage rates are being proactively adjusted or linked to broader economic indicators such as the average or median wages.

Eurofound's 2024 analysis on minimum wages underscores a dynamic period of change with significant implications for employers across the EU.

This strategic approach will be key to ensuring business resilience and contributing to a fair, competitive, and prosperous European labour market.

Here you can find the previous Eurofound’s analysis on minimum wage in 2023.