Share

Minimum wage for all linked to inflation: first yes to the EU Directive, but it will not be binding

There are still two steps left in Europe, then we will move on to the ratifications of the countries, which however will have no obligation to introduce a minimum wage - Here's what the directive provides

Minimum wage for all linked to inflation: first yes to the EU Directive, but it will not be binding

The European Union reached an agreement on minimum salary, but this is only a first step and there are no revolutions in sight. The agreement on new directive was announced by Social Affairs Committee of the European Parliament: now the two most important steps are missing, namely the green light from the Plenary of the European Parliament (which, however, can no longer amend the text) and the ratification by the EU Council. After that, the ball will pass to the individual countries, which will have two years to ratify. But be careful: the directive there is no obligation to introduce a statutory minimum wage.

What does the new EU minimum wage directive provide?

The goal is pretty harmonize existing rules, given that 21 out of 27 EU countries already have a minimum wage. The package of rules therefore provides for the introduction of two reference parameters to define the remuneration of employees and assimilated workers (cost of life e purchasing power) and theautomatic update every two years. It is also strengthened collective bargaining where this does not reach the 80% threshold. There are no maximum and minimum levels for wages, which will therefore continue to be very different between the various countries, each of which has the right (but not the obligation) to set its own level of legal minimum wage.

What changes in Italy, where there is no minimum wage

Italy is among the six EU countries that do not have a minimum wage (the others are Austria, Cyprus, Denmark, Finland and Sweden): the European directive, as mentioned, does not require the introduction of one, but to strengthen the collective agreements made between employers and trade unions. In Italy, therefore, more power will generally have to be given to the CGIL, CISL and UIL. In any case, it is planned to act where collective agreements are below an 80% threshold, through an action plan setting out a clear timeline and concrete measures to reach this threshold.

Fight against illegal work

To avoid situations of illegality, States are required to strengthen controls by labor inspectorates and develop the capacity of law enforcement authorities to prosecute non-compliant employers.

comments