Overview
- The court invalidated the directive’s mandatory criteria for setting and updating minimum wages and the ban on lowering indexed minimums.
- All other provisions remain, including the requirement for states below 80% collective-bargaining coverage to file action plans.
- Germany, with roughly 50% coverage, has yet to submit its plan and the labor ministry says it will do so by 31 December.
- The judgment has no direct effect on Germany’s approved minimum wage path to €13.90 in 2026 and €14.60 in 2027.
- Denmark won partial success with its challenge after an advocate general had urged total annulment, while unions and the EU welcomed the outcome and employer groups voiced concern.