The European Commission published its first biennial report on 27 July 2026 analysing Member State data on minimum wage protection and action plans to promote collective bargaining under Directive (EU) 2022/2041, covering the period 2021-2023. The report finds that statutory minimum wage disparities across the EU are narrowing when adjusted for purchasing power, but real wage losses have hit workers in both statutory and collective bargaining systems during the high-inflation period.
Of the 27 Member States, 20 have statutory minimum wages, while seven (Austria, Belgium, Denmark, Estonia, Finland, Italy, Sweden) provide minimum wage protection solely through collective agreements. In 2023, statutory minimum wages ranged from EUR 399 per month in Bulgaria to EUR 2,509 in Luxembourg, a six-fold gap that shrinks to under three times when adjusted for purchasing power. Between 2021 and 2023, real statutory minimum wages rose in 10 of 18 Member States, with the largest gains in Germany (9%) and Romania (8.7%), while the largest losses occurred in Slovakia (-9.7%) and Czechia (-11.4%). Six Member States had statutory minimum wages at or above 60% of the median wage: Portugal, Slovenia, France, Poland, Germany, and Greece.
Among the seven Member States relying solely on collective agreements, real lowest pay rates fell by 5-10% in all except Austria (0.2%) and Belgium (+3%). The report notes that 18 Member States have collective bargaining coverage below the 80% threshold set by the directive. As of 15 June 2026, 12 Member States had submitted the required action plans to promote collective bargaining: Bulgaria, Czechia, Estonia, Greece, Ireland, Latvia, Lithuania, Malta, Netherlands, Poland, Romania, and Slovakia. Six Member States are still discussing their plans with social partners.
The report highlights that while minimum wage disparities are narrowing, the high inflation of 2022-2023 eroded real wages in many countries, affecting workers in both statutory and collective bargaining systems. The Commission will continue to monitor implementation of the directive, with the next biennial report due in 2028. The findings will inform ongoing discussions in the Council and European Parliament on the effectiveness of minimum wage protection across the EU.