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Directive (EU) 2022/2041 does not require the introduction of a statutory minimum wage in countries that do not have one. Yet, it obliges all Member States to comply with a series of fundamental requirements aimed at improving the living and working conditions of low-income workers.
Objectives and scope of application of Directive EU 2022/2041
In its first article, the Directive clearly defines its three main objectives:
- ensuring the adequacy of statutory minimum wages,
- promoting collective bargaining on wage setting,
- improving workers’ effective access to minimum wage protection.
It is important to note that the text fully respects the autonomy of the social partners and the competence of Member States in setting wage levels. In countries where wages are determined exclusively through collective agreements, this system may continue to operate without changes.
The Directive applies to all workers who have an employment contract or employment relationship within the meaning of national legislation. It considers labour market transformations and the growing spread of flexible forms of work, promoting protection that also covers vulnerable categories such as temporary agency workers, part-time workers, platform workers and trainees, insofar as they fall within the definition of “worker” under Union law.
Overview of Directive EU 2022/2041
The main aim of Directive (EU) 2022/2041 is to ensure that all workers in the European Union can benefit from fair and adequate wages, regardless of the country in which they work. The legislation seeks to combat the growing prevalence of in-work poverty and the marked wage disparities among Member States, while fostering upward social convergence.
To achieve this, the Directive acts on two fronts:
- it establishes common criteria for setting and updating statutory minimum wages;
- it strengthens the role of collective bargaining, considered an essential tool for raising wage levels and improving job quality.
Overall, the Directive seeks to create a labour market that is fairer, more transparent and more competitive, capable of ensuring decent living conditions for all European workers.
In particular, the directive requires Member States to:
1. Promote collective bargaining
Member States must actively work to strengthen and expand collective bargaining in wage setting, centrally involving the social partners—trade unions and employers’ organizations—while respecting national practices.
The Directive also requires Member States to adopt safeguards ensuring that workers, union representatives and organizations involved are protected from discrimination or interference when exercising collective bargaining rights.
Where collective bargaining coverage is below 80%, the State is obliged to:
- introduce a framework that promotes collective bargaining;
- develop an action plan with concrete measures and a timetable to gradually increase coverage, in full respect of social partners’ autonomy.
2. Ensure adequate minimum wages
Member States with a statutory minimum wage must adopt transparent procedures and clear criteria for setting its level, taking into account:
- the purchasing power of minimum wages, considering the cost of living,
- general wage levels,
- wage growth trends,
- Productivity.
They may also use indicative reference values, including international benchmarks such as 60% of the median wage or 50% of the average wage, to assess adequacy.
To ensure that minimum wages remain up-to-date and sufficient, States must review them regularly:
- at least every two years, or
- every four years for States using an automatic indexation mechanism, provided that this mechanism never results in a reduction of the minimum wage.
Recently, the Court of Justice of the European Union annulled the above-mentioned provisions, in its judgment of 11 November 2025 in Case C-19/23, Denmark Parliament and Council (Adequate Minimum Wages), on the grounds that they exceeded the EU’s competences.
3. Strengthen enforcement and effective access to the minimum wage
According to the directive, Member States must:
- reinforce labour inspectorates to carry out more field inspections;
- combat violations such as undeclared overtime and contractual abuses.
4. Ensure transparency and workers’ rights
Member States must also guarantee workers:
- access to information on minimum wages and complaint mechanisms;
- protection and tools for dispute resolution;
- safeguards against retaliation for reporting violations.
5. Monitor and report data to the Commission
Every two years, Member States must submit detailed data on:
- collective bargaining coverage,
- minimum wage levels,
- changes and deductions,
- workers covered and not covered.
For systems based solely on collective bargaining, Member States must report:
- lowest wages;
- coverage share;
- comparison with uncovered workers’ wages.
When required, these data must be provided at least for major sectoral, territorial or multi-employer collective agreements, including those declared universally applicable.
The first submission concerns the years 2021, 2022 and 2023 and must be sent by 1 October 2025, with the possibility of omitting data unavailable before 15 November 2024.
The Commission then analyses the information received and reports to the European Parliament and the Council every two years.
Sanctions for non-compliance with Directive EU 2022/2041
Directive (EU) 2022/2041 requires Member States to provide effective, proportionate, and dissuasive sanctions for violations of minimum wage rules. This covers both failure to comply with statutory minimum wages and non-respect of minimum pay levels in collective agreements.
The Directive allows States to define their sanction systems in detail. However, it requires that protections are genuinely enforceable. Employers must not benefit from abusive practices such as wages below the minimum, unjustified deductions, or contractual evasion.
In countries without a statutory minimum wage, sanctions may take the form of penalties or compensation under collective agreements. The goal is to ensure that every violation has real consequences, discourage unlawful behavior, and effectively protect workers.
