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

The Commission welcomes todays judgment of the Court of Justice of the European Union largely confirming202fthat the202fDirective202fon adequate minimum wages202fstands on firm legal ground.  Adequate minimum wages are202fessential for202fsocial fairness and a productive and inclusive economy. They help to protect workers purchasing power, reduce202fwage inequality and in-work poverty, support domestic202fdemand202fand strengthen incentives to work. They also help to close the gender pay gap.202f

President Ursula von der Leyen said « Every worker in Europe should be able to earn a living. Todays 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.

Since the Directives 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.202f202f

In todays 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 to202fstrengthen minimum wage protection and ensure202fthat202fas many workers as202fpossible benefit202ffrom them.

The Commission takes note of the Courts 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 Court ruling does not affect the legislation adopted by Member States transposing the Directive. The Commission will202fcontinue its efforts to ensure the full and correct implementation of the Directive in all Member States.

Executive Vice-President for social rights and skills, quality jobs and preparedness, Roxana Mînzatu, said “Todays 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.”