An EU minimum wage target for adequate in-work incomes?
| DOI | 10.1177/1388262720968118 |
| Author | Sarah Marchal |
| Date | 01 December 2020 |
| Published date | 01 December 2020 |
| Subject Matter | Articles |
Article
An EU minimum wage target
for adequate
in-work incomes?
Sarah Marchal
Centre for Social Policy Herman Deleeck, University of Antwerp, Belgium
Abstract
This article summarises the arguments in favour of an EU initiative on minimum wages and high-
lights the steps that have been taken so far, focusing, in particular, on the First Stage consultation
document prepared by the European Commission. Based on this consultation document and
previous proposals, this article assesses some of the issues related to promoting an EU target
minimum wage as a percentage of a national reference wage. Focusing on the adequacy of minimum
wages for workers and their families, this article highlights first, the impact rather technical issues
relating to the definition of the reference wage may have, and second, the importance of con-
sidering the interaction of the minimum wage with the broader tax benefit system in ensuring
adequate in-work incomes. Whereas an EU initiative on minimum wages certainly has merit, these
two caveats illustrate the need for a clear definition of what one wants to achieve by this initiative,
and indicate that specific goals will require additional accompanying measures, such as a further
monitoring of the net incomes of minimum wage earners
Keywords
EU social policy, minimum wage, model family simulations, adequate in-work incomes, EU initiative
on minimum wages
1. Introduction
Over the past number of years, various proposals have been put forward for an EU initiative on
minimum wages, fed by concerns about fair and adequate wages, wage inequality and competition
between Member States and social dumping (cf. infra). Increases in (in-work) poverty have led
policymakers to critically reflect on the role of low wages and precarious work conditions.
Recently, the European Commission launched a consultation procedure among the social partners
Corresponding author:
Sarah Marchal, University of Antwerp, Sint Jacobstraat 2, de Meerminne, Antwerp, 2000, Belgium.
E-mail: sarah.marchal@uantwerpen.be
European Journal of Social Security
2020, Vol. 22(4) 452–466
ªThe Author(s) 2020
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DOI: 10.1177/1388262720968118
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