EU minimum wage rules stand as ECJ rejects Denmark bid

The European Court of Justice has upheld the core provisions of the EU Directive on adequate minimum wages, dismissing Denmark’s request to annul the legislation in its entirety.

The Court ruled that the Directive was adopted on the correct legal basis and confirmed the validity of its provisions promoting collective bargaining in wage-setting.

The European Commission welcomed the judgment, noting that the Directive ‘stands on firm legal ground’. It stressed that adequate minimum wages are crucial for social fairness, reducing wage inequality and in-work poverty, bolstering purchasing power, supporting domestic demand, and helping to narrow the gender pay gap.

Since the Directive’s adoption in 2022, minimum wages have risen rapidly across Europe, lifting living standards and narrowing disparities between the highest and lowest minimum wages in the Union, European Commission said in a release.

The Court annulled only parts of two provisions concerning criteria Member States with statutory minimum wages must consider, as well as a rule preventing reductions in minimum wages when they are automatically indexed. The Commission said it is assessing the impact of these annulled elements.

The ruling does not affect national legislation already adopted to transpose the Directive. The Commission confirmed it will continue working to ensure full and correct implementation across all Member States.

ALCHEMPro News Desk (HU)