Overview
- The Court of Justice of the EU voided two provisions of the 2022 directive, canceling criteria for how minimum wages are set and updated and a rule preventing cuts where wages are automatically indexed.
- Other parts of the directive remain in force, including duties to promote broad collective-bargaining coverage, with Germany still expected to file an action plan by December 31, according to its labor ministry.
- Denmark’s challenge, supported by Sweden, was partially upheld as the judges found the EU had overstepped by prescribing pay-setting standards.
- The ruling does not change Germany’s scheduled minimum wage increases to 13.90 euros in 2026 and 14.60 euros in 2027, though unions note a 60 percent median-wage benchmark would exceed 15 euros.
- The directive was adopted by 24 of 27 EU states in 2022, and the court reaffirmed that EU law may regulate working conditions but not the level of remuneration.