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

In its judgment, the EU Court of Justice dismissed the request to annul in its entirety the Directive on adequate minimum wages. The Court confirmed the validity of the provisions of the directive relating to collective bargaing on wage-setting.

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. 

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.

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