Minimum wages

(Photo: European Central Bank)

The minimum wages of the EU vary between 82 Euro a month in Bulgaria and 1503 Euro a month in Luxembourg.

Half of the existing EU states legally provide for obligatory minimum wages, making it illegal to employ a person for less than a minimum amount. In other countries, minimum salaries are negotiated through collective bargaining. Wage fixing is not an EU power (competence).

In famous court cases from 11 and 18 December 2007 the EU Court has deemed it illegal for trade unions to act for higher salaries than the minimum salaries when foreign companies provide their services. Viking and Lava-Vaxholm cases followed by the Rüffert case from 2008 which make it illegal for public authorities to insist on normal salaries in public contracts.

Future

The proposed Lisbon Treaty proposes that social policy be made a shared competence - EU law would therefore suppress member states' existing legislation and right to legislate in this area.