Report

Consolidation of the New European Minimum Wage Policy: WSI Minimum Wage Report 2026

In recent years, minimum wage policy in Europe has undergone a profound change: Many EU countries have raised their minimum wages above average and focused on the goal of ensuring an adequate standard of living. A consolidation of the new course is now emerging, as EU countries are now increasingly basing their minimum wage calculations on reference values as recommended in the European Minimum Wage Directive. The Directive was recently found to be fundamentally in compliance with European law by the European Court of Justice. In Germany, the Minimum Wage Commission has significantly increased the minimum wage and is now pursuing the goal of reaching 60% of the median wage. However, as the reference value has not yet been enshrined in law, progress in this country is still on shaky ground.