Commission welcomes the judgment of the Court largely confirming the validity of the Directive on adequate minimum wages

The Commission welcomes today’s judgment of the Court of Justice of the European Union largely confirming that the Directive on adequate minimum wages  stands on firm legal ground.  Adequate minimum wages are essential for social fairness and a productive and inclusive economy. They help to protect workers’ purchasing power, reduce wage inequality and in-work poverty, support domestic demand and strengthen incentives to work. They also help to close the gender pay gap.

President Ursula von der Leyen said: « Every worker in Europe should be able to earn a living. Today’s ruling is a milestone for Europeans – it is about dignity, fairness, and financial security. The Directive will be implemented with full respect for national traditions, the autonomy of social partners and the importance of collective bargaining. Our commitment is that work should truly pay.”

Executive Vice-President for social rights and skills, quality jobs and preparedness, Roxana Mînzatu, said: “Today’s Court judgement reinforces the European social model which is based on fair and adequate wages, and strong collective bargaining – bringing both social fairness and economic benefits. This is good news for workers, especially those who earn low-wages, and for employers across Europe who pay fair salaries.” 

Since the Directive’s adoption in 2022, minimum wages have risen rapidly across Europe, helping to raise pay and living standards for millions of workers. At the same time, the gap between the highest and lowest minimum wages in the EU has narrowed.

In today’s judgment, the Court dismisses the request of Denmark to annul the Directive in its entirety. Furthermore, it also confirms that the Directive was adopted on a correct legal basis.

The Court confirmed the validity of the provisions of the Directive relating to collective bargaining on wage-setting. The Commission considers they are essential to strengthen minimum wage protection and ensure that as many workers as possible benefit from them.

The Commission takes note of the Court’s decision to annul only parts of two provisions listing the criteria that must be taken into account by Member States with statutory minimum wages, as well as the rule preventing a decrease of minimum wages when they are automatically indexed. The Commission is analysing the impact of the annulled provisions.

The Court ruling does not affect the legislation adopted by Member States transposing the Directive. The Commission will continue its efforts to ensure the full and correct implementation of the Directive in all Member States.

More information: European Commission