The minimum wage differs significantly from country to country within the European Union. In July 2022, the minimum wage was just €363 per month in Bulgaria but stretched to €2313 per month in Luxembourg. The highest minimum wages are found in Luxembourg, Ireland and Germany; the lowest in Bulgaria, Latvia and Estonia (you can find an interactive map on minimum statutory pay here).

In the EU, 21 out of 27 countries have a statutory minimum wage. In contrast, wage levels are determined through collective pay bargaining in the other six (Austria, Cyprus, Denmark, Finland, Italy and Sweden).

With the adoption of the directive for minimum wages last 14 September 2022, two-thirds of the countries in the EU will see their minimum wage increase.

The EU minimum wage directive is also expected to affect the gender pay gap, narrowing it by at least 5%.

The Directive does not set a figure for the minimum wage and does not force countries that do not currently have a minimum wage to introduce one into their legislation but promotes collective bargaining on wage determination and adequate levels of statutory minimum wages, aiming to improve effective access to minimum wage protection for all EU workers.

Member States with statutory minimum wages have to ensure the minimum wage is adequate for achieving a decent standard of living, defining those criteria by their national practices either in relevant national legislation, in decisions of the competent bodies, or in tripartite agreements.

In the agreed text, countries also must combat abusive subcontracting, fake self-employment and unregistered overtime and Member States must take the appropriate measures to ensure that effective data collection tools are in place to monitor minimum wage protection.

Now the European Council have to formally adopt the Directive and once this is complete, member states will have two years to implement its provisions in their legislations.