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Does the reduction address youth unemployment?
“Yes, the differentiation is included in the proposed directive and some countries are doing it. The differentiation of the minimum wage can solve problems such as youth unemployment,” replied a senior official of the European Commission to DELFI.lt’s question about the proposal to differentiate MMA by age in Lithuania.
He added that each state can address this issue in turn, but it is important that such actions are limited in time and proportionate, and that the principles of justice and non-discrimination are respected.
“Member States can legislate for a wage lower than the minimum wage paid to workers. Member States must ensure that these minimum wage reductions are necessary, objectively justified and proportionate,” states Article 6 of the Directive.
The issue of age differentiation of MMA has recently been raised in Lithuania. It was discussed at a meeting of the Tripartite Council, made up of government, employer and worker representatives, on Tuesday.
Minimum wage differentiation can address issues such as youth unemployment.
“Some European countries practice differentiating MMA according to different age groups (UK, Ireland, Netherlands and others), and young people under 25 receive lower MMA than other workers due to lack of work experience and education general or higher “. – declared the Business Confederation of Lithuania.
This proposal has caused great outrage among youth and student organizations, but, as can now be seen, the European Commission can be blessed.
There will be no uniform MMA throughout the EU
The latter establishes in its proposal for a directive on EU MMA that such a document is necessary to guarantee the protection of EU workers and decent living conditions.
“Improving living and working conditions protects not only our employees, but also employers who pay living wages. At the same time, it lays the foundation for a fair, inclusive and resilient recovery,” said the President of the European Commission. , Ursula von der Leyen.
Currently, 21 of the 27 EU countries (including Lithuania) apply the established MMA, and in 6 of them the minimum is established through collective bargaining. The minimum established varies several times in different member states. For example, in Lithuania the MMA (before tax) is 607 euros, the highest MMA is in Luxembourg – even 2,142 euros, in Belgium and Germany – around 1,600 euros, and the lowest minimum – in Bulgaria (312 euros ) and Latvia (430 euros).
According to the Commission, between 10 and 20 million workers will benefit directly from the directive. However, this does not mean that the MMA will be the same across the EU or that in countries like Lithuania, the “minimum” will have to reach the level of the richest EU countries.
To put it bluntly, EU citizens: we do not promise the same MMA for all Europeans; We do not offer a one size fits all MMA for all of Europe. That would not be realistic.
Nicolas Schmitas
“It just came to our notice then. If Bulgaria were to adopt the Luxembourg MMA tomorrow, then the Bulgarian economy would disappear. So that’s not possible. Due to productivity differences, there can be no 100% compensation. We are talking about convergence, alignment with productivity (…). I make it quite clear to EU citizens: we do not promise the same MMA for all Europeans; we do not offer a single size of MMA for all of Europe. That would not be realistic. That would be completely impossible, irresponsible. That should be very clear, “Nicolas Schmit, in charge of jobs and social rights, said at a news conference on Wednesday. – What we are looking for is a better convergence, closing gaps, raising wages, generating positive dynamics around the MMA and around all wages in general, because there is a link between the MMA and wages in general. That’s what the directive is for, not to establish a single MMA for all of Europe. “
The directive requires EU countries to establish stable criteria for MMA, update them regularly, establish advisory institutes, limit MMA cuts, involve social partners, ensure MMA compliance and report to the Commission.
The directive doesn’t even contain specific criteria (like a percentage of median or median salary) that the state must meet. For example, in Lithuania the MMA is 44 percent. average salary. It is true that the explanatory memorandum of the directive recommends that countries use international criteria of 60%. of the total average salary and 50 percent. of the average salary. If this last criterion were established in Lithuania, then the MMA would increase to 690.5 euros.
The directive will now have to be approved by the European Council and the European Parliament. Member States will then have two years to apply the provisions of the directive. The Commission will evaluate the directive within five years.
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