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ECJ Strikes Down Key Parts of EU Minimum‑Wage Directive, Leaves Core Framework Intact

The case, brought by Denmark, confirms wage levels remain a national competence under EU law.

Overview

  • Judges annulled the directive’s binding criteria for setting and updating minimum wages and the ban on lowering indexed minimum wages.
  • Most of the 2022 law survives, including requirements to strengthen collective bargaining and to file action plans where coverage is low.
  • Germany must submit an action plan to raise collective‑agreement coverage by 31 December, with coverage currently around 50 percent.
  • The ruling does not change Germany’s already decided increases to €13.90 per hour on 1 January and €14.60 a year later.
  • The court departed from the advocate general’s call for full annulment, giving Denmark a partial win while affirming the EU’s role on working‑conditions policy.