The International Experience - Appendix 1: Minimum Wages
Looking first at the countries with statutory minimum wages, this shows the level of minimum wages in the national currency in 2004 (rates in EUR are given in parenthesis for countries that are not members of the 'euro-zone' ).
| Belgium | Monthly | EUR 1,210 |
|---|---|---|
| Bulgaria | Hourly | BGN 0.71 (EUR 0.36) |
| Monthly | BGN 120 (EUR 61.43) | |
| Czech Republic | Hourly | CZK 39.60 (EUR 1.24) |
| Monthly | CZK 6,700 (EUR 210.09) | |
| Estonia | Hourly | EEK 14.60 (EUR 0.93) |
| Monthly | EEK 2,480 (EUR 158.50) | |
| France | Hourly | EUR 7.61** |
| Monthly | EUR 1,286.09** | |
| Greece | Daily | EUR 25.01 |
| Monthly | EUR 559.98 | |
| Hungary | Hourly | HUF 305.00 (EUR 1.21) |
| Daily | HUF 2,440 (EUR 9.70) | |
| Weekly | HUF 12,000 (EUR 47.68) | |
| Monthly | HUF 53,000 (EUR 210.60) | |
| Ireland | Hourly | EUR 7.00 |
| Latvia | Hourly | LVL 0.474 (EUR 0.71) |
| Monthly | LVL 80 (EUR 120.26) | |
| Lithuania | Hourly | LTL 2.95 (EUR 0.85) |
| Monthly | LTL 500 (EUR 144.81) | |
| Malta | Weekly | MTL 53.88 (EUR 125.89) |
| Netherlands | Monthly | EUR 1,264.80 |
| Poland | Monthly | PLN 860 (EUR 189.98) |
| Romania | Hourly | ROL 16,342.44 (EUR 0.40) |
| Monthly | ROL 2,800,000 (EUR 69.12) | |
| Slovakia | Hourly | SKK 37.40 (EUR 0.93) |
| Monthly | SKK 6,500 (EUR 162.41) | |
| Slovenia | Monthly | SIT 117,500 (EUR 491.45) |
| Spain | Daily | EUR 16.36 |
| Monthly | EUR 490.80 | |
| UK | Hourly | GBP 4.85 (EUR 7.14) |
* Conversions into EUR, where necessary ** Rate applies only to workers on 39-hour week.
Source: EIRO.
| Country | Frequency of adjustments | Adjustment body | Adjustment criteria | Supervising institutions | Fines in case of non-compliance |
|---|---|---|---|---|---|
| Belgium | Annually. | Social partners. | Indexation (minimum wage rise is linked to 'health index' of prices). | Industrial tribunal or Federal Public Service Employment, Labour and Social Dialogue. | Yes. |
| Bulgaria | Regularly (no fixed period, but annually since 2000). | Government decree; usually implemented unilaterally by the government. | Economic and social situation. | No monitoring system. | No; paying wages lower than the minimum wage is a very common practice. |
| Czech Republic | Annually. | Government, after consulting the social partners. | Consumer prices index. | Public labour offices (of which there are 100). | If labour offices find shortcomings, the employer is fined and obliged to top up pay to the level of the minimum wage. |
| Cyprus | Annually. | Government in consultation with the social partners. | Various factors (especially consumer prices index). | Ministry of Labour and Social Insurance's Department of Labour Relations. | Yes; the amount depends on the number of days of non-compliance. |
| Estonia | Annually. | Government decree, based on a decision by the social partners. | Various factors - in particular forecast for consumer prices index, labour productivity and economic situation. | Labour inspectorate. | No penalties. If employer pays less than the minimum wage, the employee can demand the arrears with 0.5% interest, through labour inspectorate. |
| France | Annually. | Government decree, after consulting the social partners. | Development of prices index and basic hourly manual worker's wages. | Labour inspectorate, with various monitoring bodies. | Maximum fine of EUR 1,500 for each case of non-compliance. |
| Greece | Twice a year. | Government by law (different laws for private and public sector), based on national collective agreement. | Consumer prices index. | Labour inspectorate and labour courts can intervene in the event of complaint. | Employer has to pay any arrears with interest. |
| Hungary | Regularly | Government, after an agreement is concluded by tripartite council. | Negotiations are integrated into the annual intersectoral bargaining round. | Labour inspectorate. | Maximum is EUR 410 (single case) to EUR 24,500 (multiple cases). |
| Ireland | Every 16 months (in practice). | Government and social partners through social pacts; recently, Labour Court has a role. | Negotiated as part of national pacts. | Labour inspectorate | Fines and/or imprisonment. |
| Latvia | Irregularly, depending on political considerations (every 1-2 years). | Government, after consulting the social partners. | Pressure from social partners, budgetary considerations and minimum wage increase plan agreed by social partners and adopted by cabinet in 2003. | Labour and financial control institutions. | Courts rule on cases of non-compliance. Normally, employer must pay all unpaid wages. |
| Lithuania | Regularly. | Government, upon recommendation of tripartite council. | No specific criteria. | Labour inspectorate. | Employers paying less than the minimum wage are fined up to LTL 10,000 (EUR 2,896). |
| Malta | Annually. | Government, upon recommendations made by the Employment Relations Board. | National minimum wages increase linked to the cost of living index. | Government Department of Industrial and Employment Relations. | Penalties range between EUR 231 to EUR 2,313 in the second case of non-compliance. |
| Netherlands | Twice a year (frozen since 2003). | Government decision. | Development of collectively agreed wages. | Labour inspectorate. | No penalties; government stipulates that employers should not pay less than minimum. |
| Poland | Once or twice a year. | Tripartite commission, with reference to proposals and information presented by the government. | Forecast for consumer prices index and other economic indicators. | Labour inspectorate. | Yes. |
| Romania | Annually (since 2002) | Governmental decree, after consulting the social partners. | No formal criteria, though the government decides to adjust the minimum wage according to developments in the cost of living, consulting the social partners. | Labour inspectorate. | The amount varies between 3 and 6 months' gross minimum wages. |
| Slovakia | Annually. | Government, based on a decision made by social partners (tripartite agreement). | Relationship with average wage and subsistence minimum, plus whole economic situation. | Labour inspectorate; employee representatives at the workplace. | Up to SKK 1,000,000. |
| Slovenia | Annually. | Government, based on a decision made by social partners (tripartite agreement). | Expected inflation. | Labour inspectorate. | Up to SIT 500,000. |
| Spain | Once or twice a year. | Government, after consulting the social partners. | Forecasts for inflation, productivity, economic situation. | Labour inspectorate. | Yes. |
| UK | Annually (in practice, since 2000). | Government decision, based on recommendations by the Low Pay Commission. | Whole economic situation (taking into account economic and social implications). | Inland Revenue and employment tribunals or civil courts. | GBP 7.20 per day and worker; employer has to pay any arrears to employees. |
Source: EIRO.
| Country | Frequency of adjustments | Criteria for adjustments | Supervising institution | Fines in case of non-compliance |
|---|---|---|---|---|
| Austria | Annually. | Pay increases influenced by bargaining outcomes in pattern-setting metalworking industry; increases vary with the sectoral power of trade unions. | No specific supervising institution; trade unions support employees when they appeal to the labour court over non-compliance with minimum rates of pay. | No, but employer has to refund any arrears. |
| Denmark | Annually. | No specific criteria used in bargaining. | Industrial court and trade unions. | Unions are allowed to take action against companies failing to pay, through boycotts. |
| Finland | Annually. | Specified in collective agreements, with no single criterion (such as inflation) used. | In conflicts between an individual employee and an employer, a trade union can take the case to the civil court on behalf of its members. Additionally, the unions provide legal assistance to members when they sue their employers. | Yes. Additionally, the employer has to refund the arrears. |
| Germany | Annually or every two years. | Productivity, inflation, profits. | No institution; but individual employees or unions can appeal to the labour court; with regard to statutory minimum wages based on Posted Workers Act (AEntG), customs authority fights against illegal working including non-compliance with minimum wage. | No, but employer has to refund any arrears; fines only exists for sectors affected by the AEntG. |
| Italy | Every two years. | Expected inflation rate. | Labour tribunal. | Yes. Additionally, the employer has to refund the arrears. |
| Norway | Annually. | Metalworking industry is pattern-setting; wage increases are based on productivity and inflation. | Social partners, in particular trade unions, and labour court in case of conflict. | No. Employer has to pay the correct wages if agreement is found to have been breached. |
| Sweden | Annually. | Expected inflation rate, productivity growth (as for ordinary wage-setting). | Labour court. | No, but employer has to refund any arrears. |
Source: EIRO.
