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Pay and income

Pay and income are central to employment relations and quality of life. The issue has received even more attention at EU level due to crisis-inflicted developments in the economy and in society as a whole.

Topic

Recent updates

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This 2024 annual review of minimum wages provides a synopsis of minimum wage setting during 2023 in the EU27 and Norway. It reports in detail on the processes and outcomes...

26 Meitheamh 2024
Publication
Research report

Eurofound research

Eurofound reports on various aspects of pay and income in light of changing economic circumstances across Europe.

Pay monitoring

Eurofound research brings together a range of information on pay. The regular nature of reporting generates a longer series of observations on collectively agreed pay, so that trends can be monitored. Eurofound publishes regular reports on statutory minimum wages and collectively agreed pay. It also monitors national-level developments in relation to wage-setting mechanisms, equal pay, variable pay, low pay and the gender pay gap.

Working life country profiles contain information on pay at national level and are regularly updated. 

Eurofound's European Jobs Monitor (EJM) assesses shifts in employment by job, according to various qualitative measures including pay. In particular, it contributes to our knowledge on the phenomenon of employment polarisation – that is, the extent to which employment growth is likely to be greater at the top and bottom of the wage distribution than in the middle.  

Pay transparency

In light of the discussion around pay discrimination and equal pay in the EU, Eurofound research looks at the issue of pay transparency, including measures to promote gender pay transparency in companies and experiences in different Member States. 

Survey data

Eurofound’s surveys also monitor pay conditions in the EU. Pay is central to Eurofound’s research in assessing quality of work. In the European Working Conditions Survey (EWCS), earnings  is one of seven indicators of job quality. The EWCS also reports on the gender pay gap. Explore the EWCS data explorer.

The European Quality of Life Survey (EQLS) monitors the impact of income on living standards and how income inequality is related to social cohesion and well-being. It analyses how the crisis has affected families, looking at low-income families, household debt and those groups at risk of poverty. The EQLS also gathers information on income in retirement and options for extending working lives. Explore the EQLS data explorer.

The European Company Survey (ECS) captures the use of variable pay schemes in establishments, as well as the coverage of the employees in those establishments by collective wage agreements. The survey allows to link the information on variable pay and wage bargaining with information on work organisation, human resource management, direct employee participation and social dialogue, as well as with performance and workplace well-being.

Eurofound also looks at the issue of wages as a key aspect of inclusive labour markets. Research explores the concept of a living wage, which differs from statutory minimum wages or minimum income schemes. The research investigates how this has been implemented or advocated as a means to provide an adequate income allowing a decent standard of living and full participation in society.

Key outputs

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The 2023 annual review of minimum wages was prepared in the context of unprecedented inflation across Europe. While this led to hefty increases in nominal wage rates in many countries...

29 Meitheamh 2023
Publication
Research report
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This report explores the distribution of household wealth in the EU Member States and analyses the role of wealth in social mobility. Using data from three datasets (the Household Finance...

30 Márta 2021
Publication
Research report

EU context

The European Pillar of Social Rights sets out the EU’s commitments on wages: the right of workers to fair wages that provide for a decent standard of living; ensuring adequate minimum wages; preventing in-work poverty.

Following a proposal by the European Commission in October 2020, the European Parliament and Council of the EU adopted a new Directive on adequate minimum wages on 19 October 2022. It aims to reduce in-work poverty, promote collective bargaining on wages and increase access to minimum wage protection.

On 30 January 2023, the Council adopted a Recommendation on adequate minimum income ensuring active inclusion. 

To strengthen the principle of equal pay for work of equal value between men and women, the Council adopted a new Directive on pay transparency on 24 April 2023. The directive aims to tackle pay discrimination and help close the gender pay gap in the EU.

 

European Industrial Relations Dictionary 

Eurofound expert(s)

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Christine Aumayr-Pintar is a senior research manager in the Working Life unit at Eurofound. Her current research topics include minimum wages, collectively agreed wages and gender...

Senior research manager,
Working life research unit
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Carlos Vacas Soriano is a research manager in the Employment unit at Eurofound. He works on topics related to wage and income inequalities, minimum wages, low pay, job quality...

Research manager,
Employment research unit
Publications results (125)

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the education sector. It is based on the third European Company Survey (ECS). The sector includes

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the public administration and defence sector. It is based on the third European Company Survey (ECS

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the business, administration and other services sector. It is based on the third European Company

22 December 2016

This paper is one in a series of sector profiles giving an overview of structural characteristics, work organisation practices, human resource management, employee participation and social dialogue in the industry sector. It is based on the third European Company Survey (ECS). The sector includes

22 December 2016

The sixth European Working Conditions Survey (EWCS) builds on the lessons learned from the previous five surveys to paint a wide-ranging picture of Europe at work across countries, occupations, sectors and age groups. EU employment policy priorities aim to boost employment levels, prolong working

17 November 2016

This article summarises the recent developments in collectively agreed pay in the European Union. It discusses the levels at which it is carried out, its coordination and coverage. The wage outcomes are put into the perspective of past collectively agreed wage changes and key institutional variables

19 October 2016

Women’s labour market participation in the European Union has increased over recent decades, passing 70% in 2014. In that year, women comprised almost 46% of the active EU labour market population.

11 October 2016

Many EU Member States have implemented reforms to improve the sustainability of their pension systems. However, the impact of discouraging early retirement and increasing the pension age on effective retirement ages is limited, as many people are unable or unmotivated to work until pension age.

09 September 2016

Well-functioning social dialogue is a key component for the successful design and implementation of reforms needed to increase the competitiveness of Europe’s economies and create more jobs. It balances workers’ and employers’ interests and contributes to both economic competitiveness and social

06 September 2016

Developments in Working Life in Europe is part of a series of annual reviews published by Eurofound and provides an overview of the latest developments in industrial relations and working conditions across the European Union and Norway.

05 September 2016

Online resources results (889)

Austria: Social partners agree on €1,500 monthly minimum wage for all sectors

The social partners have agreed on a monthly gross minimum wage of €1,500 for all sectors, to be implemented nationally by 2020. The federal government asked them to negotiate on this in early 2017, warning them that it would legislate for a minimum wage if the social partners could not find a

Romania: New law aims to reduce pay inequality in the public sector

New government legislation to reduce financial inequalities in the public sector will see workers receive considerable wage increases, the introduction of paid overtime and a reduction in the wage gap. However, some employer organisations fear such legislation could see an exodus of workers from the

Slovenia: Latest working life developments – Q2 2017

New apprenticeship legislation, an ombudsman’s report on unpaid wages and posted workers, failure of the ‘mini-labour law reform’ and the resulting amendments to a range of labour legislation are the main topics of interest in this article. This country update reports on the latest developments in

Romania: Latest working life developments – Q2 2017

Strikes on the railways and in manufacturing, protests over public sector pay, and consultations on changes to social dialogue and labour legislation are the main topics of interest in this article. This country update reports on the latest developments in working life in Romania in the second

United Kingdom: Latest working life developments – Q2 2017

Mounting pressure to end the 1% pay cap on public sector workers, falling union membership, the ‘gig economy’, and a strike at British Airways are the main topics of interest in this article. This country update reports on the latest developments in working life in the United Kingdom in the second

Slovakia: Latest working life developments – Q2 2017

A strike at Volkswagen Slovakia over pay negotiations and the introduction of stricter conditions for the support given to unemployed workers are the main topics of interest in this article. This country update reports on the latest developments in working life in Slovakia in the second quarter of

Denmark: Private sector collective agreements concluded – despite difficulties

Collective agreements concluded in March in the private sector provided for small wage increases and improvements to education and training. However, many union members voted against an agreement about systematic overtime and measures to avoid social dumping. The deals follow the pace-setting

Spain: Milestone agreement in retail sector

An agreement between social partners in the Spanish retail sector will govern working and employment conditions for the next three years. About 260,000 employees are expected to benefit from this agreement, which is likely to set the standards for other sector agreements due to be negotiated during

Latvia: Impact of austerity measures on the public health sector

Workers in Latvia’s public healthcare sector have protested about the less favourable working conditions in their sector, not just low pay, but also the level of shift work, overtime work and work during public holidays.

Ireland: Latest working life developments – Q1 2017

Agreement on an earlier pay rise for public service staff, strikes at Tesco and Bus Éireann, and proposals on minimum pay and working hours for security guards are the main topics of interest in this article. This country update reports on the latest developments in working life in Ireland in the


Blogs results (22)
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Following a sluggish response by many Member States to introduce or modify gender pay transparency measures, as it recommended in 2014, the European Commission intends to table a proposal for EU-level legislation on pay transparency later in 2020. In this context, a new Eurofound study investigated

6 Samhain 2020
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As one of their ‘100 days in office’ initiatives, the new European Commission intends to propose an initiative for an EU minimum wage. The aim is that by 2024 every worker in the EU should earn a fair and adequate wage, no matter where they live.

15 Eanáir 2020
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The Socialist-led Spanish government that emerged last summer had, by the end of 2018, approved a hike in the statutory minimum wage. This was agreed with the left-wing Podemos party as part of an attempt to secure the parliamentary support needed for passing the proposed 2019 budget – although fail

17 Iúil 2019
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Seniority entitlements have largely been on the decline since the 1990s, and have been gradually phased-out from legislation in Europe, as well as in collective agreements. However, it would be premature to dismiss seniority-based entitlements as a thing of the past, as they remain in force across E

17 Aibreán 2019
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One year after Germany’s introduction of the Entgelttransparenzgesetz (Wage Transparency Act), the results are somewhat underwhelming. This law is Germany’s take on the European Commission’s recommendation on introducing pay transparency measures to combat the gender pay gap.

4 Feabhra 2019
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Wages grew and wage inequality fell in most EU countries in 2015. Germany is not one of the countries where wages rose most, but it did have the largest reduction of wage inequality. Our analysis shows that the German minimum wage policy introduced in 2015 strongly lifted the wages of the lowest-pai

14 Meitheamh 2018
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Measures to promote gender pay transparency haven’t been delivered yet in half of Europe – making EU level legislative action to speed up implementation an option. In this blog, originally posted in Social Europe, Christine Aumayr-Pintar details what we know about the measures from countries that ha

28 Feabhra 2018
Pay inequalities come back into focus in post-crisis Europe

The ability to make ends meet is a vital issue for many Europeans and an important priority for European policymakers. In the immediate aftermath of the 2008 economic crisis the initial focus was to mitigate and reverse job loss, particularly in the countries most affected. With employment back to p

3 Samhain 2017
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The Great Recession depressed real income levels across European countries. But the impact was very unequal across countries and income groups. Countries in the European periphery have been more affected than those in the core, halting the process of income convergence between European countries tha

23 Meitheamh 2017
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EU-wide income inequality declined notably prior to 2008, driven by a strong process of income convergence between European countries. The Great Recession broke this trend. After 2008, income convergence has been sluggish, while inequality within many countries has increased significantly.

21 Márta 2017

Data results (4)

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