Wednesday, November 12, 2025

CJEU - WHAT IT DECIDED ON ADEQUATE MINIMUM WAGES IN THE EU AFTER DENMARK'S APPEAL

 Filenews 11 November 2025



A positive decision for workers by the Court of Justice of the EU on the European minimum wage, as it ratifies most of the Directive on adequate minimum wages in the European Union.

However, it annuls the provision listing the criteria which must be taken into account by Member States with statutory minimum wages when setting and updating those wages, and the rule preventing the reduction of statutory minimum wages in the event of their automatic indexation.

The decision came after Denmark appealed to the Court of Justice of the European Union, seeking the annulment of the EU Adequate Minimum Wages Directive in its entirety. The country argues, inter alia, that the directive violates the division of competences between the Union and the Member States, because it entails direct interference in the areas of pay setting within the Union and the right of association; for which the Treaties are responsible.

The Court partially accepted Denmark's arguments and identifies such an interference in two provisions of the Directive, which are addressed to Member States with statutory minimum wages and concern the fixing or updating of such wages. As to the remainder, however, the Court dismisses Denmark's action, thereby confirming the validity of most of the directive at issue.

The first political reaction to today's decision belongs to the Group of European Socialists and Democrats in the European Parliament (S&D). "Today's decision of the Court of Justice of the EU marks a good day for Social Europe and workers' rights. The Court's ruling confirmed the validity of a large part of the EU directive on adequate minimum wages. This also confirms what Europeans have been calling for for a long time: fair and adequate wages for all," the Eurogroup said in a statement.

"In times of cost of living and housing crisis, this is a powerful message of hope and social justice. So far, only eight EU Member States have implemented the Directive. We now urge the Member States and the Commission to step up their efforts to ensure the correct implementation of the directive. There are no more excuses for delay," conclude the MEPs of the group.

CNA