On 23 July 2026, the European Commission published its first biennial report under the Minimum Wage Directive (EU) 2022/2041, analysing Member State data on minimum wage protection from 2021 to 2023 and assessing action plans to promote collective bargaining in states where coverage falls below 80%. The report reveals upward convergence in statutory minimum wages but mixed real-wage outcomes amid high inflation, and identifies 18 Member States that must act to strengthen collective bargaining coverage.
Statutory minimum wages exist in 20 Member States, while seven (Austria, Belgium, Denmark, Estonia, Finland, Italy, Sweden) rely solely on collective agreements. In 2023, the highest statutory minimum wage was in Luxembourg (€2,509 per month) and the lowest in Bulgaria (€399), a nominal ratio of roughly 6:1 that narrows to under 3:1 when adjusted for purchasing power. Real wage changes between 2021 and 2023 varied widely: Germany (+9%) and Romania (+8.7%) recorded the largest increases, while Czechia (-11.4%) and Slovakia (-9.7%) suffered the steepest losses. By 2023, Portugal, Slovenia, France, Poland, Germany, and Greece had reached the 60% of median wage benchmark often used as a reference for adequacy.
Collective bargaining coverage ranges from 100% in Belgium and Italy to below 80% in 18 Member States, which are required under the directive to establish action plans to promote collective bargaining. As of 15 June 2026, the Commission had received action plans from 12 Member States, while six (Croatia, Cyprus, Germany, Luxembourg, Hungary, Slovenia) were still under discussion. Most submitted plans set a five-year implementation horizon.
The report serves as a monitoring tool under Article 10(3) of the directive, which obliges the Commission to assess progress every two years. The findings will feed into the European Semester cycle and may inform potential infringement procedures if Member States fail to comply with the collective bargaining action plan requirement. The European Parliament and the Council are expected to debate the report in the coming months, with some MEPs likely to press for stronger enforcement mechanisms, while business groups may caution against rigid wage-setting that could affect competitiveness.
For workers in low-wage sectors, the report signals continued upward convergence in statutory minima but also highlights real-wage erosion in several Central and Eastern European countries. National governments face pressure to design credible action plans for collective bargaining, which may involve legislative changes or institutional support for social partners. Employers' organisations in states with low coverage may resist mandatory bargaining targets, citing flexibility concerns. The European Commission gains a new benchmarking tool to assess compliance, potentially leading to more targeted country-specific recommendations.