Romania, Lithuania, Bulgaria, and Poland have become the most prominent countries in the European Union (EU) regarding their minimum wage performance. Over the past decade, Romania has seen the highest percentage growth in the minimum wage, reaching +2.5% between 2015 and 2025 according to data from Eurostat. This growth is particularly notable as only five of the 15 EU-member states do not have a national minimum wage. In contrast, France at +2.1% and Malta at +2.9% lag, while France, Germany, and Poland lead with modest growth rates between 10% and 14%. This variation in wage growth rates highlights the diversity and levels of minimum wage policies across the EU.
{{ Mert Can Yilmaz expands on the topic by discussing the factors affecting minimum wage growth. Whilst Romania, Lithuania, Bulgaria, and Poland have the highest average annual minimum wage growth rates between 2015 and 2025, their monthly wage growth rates vary widely. While some countries experience 22 or more EU member states with a set minimum wage, others observe varying wage levels. Croatia, Greece, Malta, and several other countries have the lowest average monthly minimum wages, ranging even below the €1,000 mark. However, these countries often fall below the ‘low living cost’ threshold, indicating that the tenability of minimum wage is not solely determined by financial policies. For example, Marco-system 2019 highlights that countries in the ‘low living cost’ group, such as Germany and Hungary, offer lower minimum wages but maintain a relatively high living standard.}}
{{ Merten Can Yilmaz then introduces a more nuanced view of the wage gap in the EU. He acknowledges that regular comparisons, such as minimum wage figures alone, do not effectively capture the true state of living standards. He explains that purchasing power standard (PPS) is a more accurate measure, as it accounts for the variability in housing expenses and cost of living across EU countries. By adjusting for price levels, theBulletin notes that within the EU, the wage gap between members is significantly缩小. For instance, Słowada 2019 found that many countries, including Germany and Poland, fall within the ‘high living cost’ category, yet their minimum wages are relatively low.}}
{{ Mikhal Chyzhov adds depth to the analysis by discussing the long-term context of minimum wage trends in the EU. He points out that while Romania’s minimum wage growth over the past decade has been robust, other member states have experienced growth rates that lag behind. analysis of recent DECEME round excludes one of Romania’s least-piggyback countries, revealing the low growth in minimum wage overall. Mikhal Chyzhov also discusses that Poland, often referred to as the ‘ Regulatory Hero,’ adjusts its minimum wage to reflect its relative purchasing power. He explains that despite a lower minimum wage than the overall EU, Poland’s standard of living remains higher due to lower living costs.}}
{{ Niko Kovac further evaluates the relationship between minimum wage and purchasing power by highlighting the role of living costs. He explains that while countries with lower average monthly minimum wage often have higher living costs, they can still attain similar purchasing power. For example, Poland’s lower minimum wage despite its lower purchasing power standard (€1,802 to €2,638 average monthly) still allows it to achieve a higher standard of living than its cost of living. Mikha Chyzhov emphasizes that careful comparison of living standards goes beyond just looking at minimum wages.}}
{{ Mert Can Yilmaz then addresses the challenges and future of the minimum wage system in the EU. He brings up debates over whether raising minimum wages is the best approach or whether a more balanced approach to employment protections would be more effective.}}{{ Mikha Chyzhov raises questions about whether the relatively low minimum wage in some EU countries is leading to inequality and whether better protection for low辛勤 workers is possible.}}
In conclusion, Mert Can Yilmaz reflects on the ongoing debate in the European Union regarding the minimum wage and its impact on economic inequality. While Romania and other member states have achieved significant progress in their minimum wage propositions, the EU as a whole faces challenges in addressing inequality. The article suggests that further analysis is needed to fully understand the dynamics between minimum wage, living standards, and unemployment rates.
