* Collective agreements concluded by the social partners are the best way to ensure a good and fair wage – and good working conditions – for the citizens, the proposal states. Therefore, the directive seeks to promote these.
* Countries that have a high coverage rate of collective agreements generally have better terms and better wages, it says.
* All EU countries must promote the dissemination of models in which the social partners negotiate wage terms.
* In those countries that have a statutory minimum wage, adequate wages and good conditions must be ensured.
* This must be done by setting clear criteria for the minimum wage, and these must be updated regularly. Differences in minimum wages between different sectors must be limited. Social partners must be involved.
* Developments are being closely followed by the European Commission, which will demand action from the countries if they do not move.
* Countries with a coverage rate of more than 70 percent, such as Denmark, are not covered by these requirements. 70 percent is seen as a lower limit for whether the country is covered by agreements that ensure good wages and working conditions.
* The European Commission does not dictate any requirements for a specific minimum wage in the member states.
* 60 percent of a country’s median wage is considered to be a limit, so wage earners living below that are at risk of being poor.
* But almost no EU country has a minimum wage of 60 percent or more of the median wage. Bulgaria has, however. But Bulgaria also has the lowest wage in the whole EU. Therefore, such a mechanism would not help anything, the European Commission has reasoned.
Sources: European Commission