Overview
- The European Court of Justice annulled two parts of the 2022 directive: mandatory criteria for assessing adequate minimum wages and the ban on reducing index‑linked statutory minimums.
- Judges confirmed the EU may set frameworks to improve working conditions and support collective bargaining, granting Denmark only a partial win in its challenge.
- Member states must still promote high bargaining coverage and submit action plans where coverage is below 80 percent, with Germany pledging to file by 31 December 2025.
- Germany’s planned minimum wage rises to €13.90 in 2026 and €14.60 in 2027 remain in place without immediate legal change.
- Reactions split as unions press for a robust German action plan to lift coverage and employers criticize continued EU involvement, setting up national follow‑up debates.