Minimum wages in the EU: Luxembourg back in the lead, but the gap persists

As of 1 January 2025, 22 of the 27 countries in the European Union have established official minimum wages. The exceptions - Denmark, Finland, Italy, Austria, Sweden and Denmark - rely on collective agreements.

Minimum wages are expressed in gross terms and are calculated in euros per month. In countries where wages are officially set hourly (e.g. Germany, France, Ireland and the Netherlands), the data have been converted to monthly values.

The lowest minimum wages in January 2025 are recorded in Bulgaria (551 euros), Hungary (707 euros) and Latvia (740 euros). The list also includes Romania, Slovakia, Czech Republic, Estonia, Malta, Greece and Croatia, all with minimum wages below 1,000 euros.

Only six countries have set minimum wages above €1,500 per month:

• France - 1 802 euros
• Belgium - €2,070
• Germany - €2,161
• Netherlands - €2,193
• Ireland - 2 282 euros
• Luxembourg - 2 638 euros

Thus, in monetary terms, the minimum wage in Luxembourg is almost five times higher than in Bulgaria.

However, if differences in price levels are accounted for using the purchasing power standard (PPS), the picture becomes less contrasting.

Thus, when converted into PPS, the minimum wage ranges from 878 PPS in Estonia to 1,992 PPS in Germany. The gap between the lowest and the highest wages narrows to 2.3 times.

The adequacy of the minimum wage in the EU is also assessed through its ratio to the median earnings. According to the criteria set out in EU Directive 2022/2041, a minimum wage of 50-60 per cent of the median income is considered fair.

According to the new directive, Member States must ensure that minimum wages are adequate. This will involve regular reassessment, taking into account employment levels, income distribution and productivity. In the long term, the role of collective bargaining will be strengthened and the number of workers living on the poverty line will be reduced.