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EU member states and the European Parliament have agreed to increase minimum wages across the bloc. The compromise, as explained by the European Parliament chief negotiator Dennis Radtke, includes standards on how the minimum wage will be set, updated and implemented.
In addition, the proposed law stipulates that EU countries should set out action plans to increase coverage of collective agreements by 80 per cent, the CDU politician for the German Press Agency (DPA) confirmed. The lives of millions of workers will be significantly improved, he said.
According to the decision, that the minimum wage should be updated at least every two years in the future. There is an exception for countries that use an automatic indexing mechanism, and this is valid for a period of four years.
Social partners such as employers’ unions and associations should be involved in procedures for setting and updating minimum wages. The European Commission welcomed the agreement. He had proposed a bill in October 2020.
With the agreement reached now there was the challenge that the EU treaties set too narrow limits because the European Union is not allowed to set specific wage levels, but only to issue guidelines.
German Labor Minister Hubertus Heil said he was pleased with the deal, which he said would set new standards for a social Europe.
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