The first overview of the minimum wage set for 2022 shows that, while some negotiations are still ongoing, virtually all EU Member States have increased their nominal statutory rates. Compared to last year, when most countries settled for cautious increases against a background of deep uncertainty caused by the pandemic, growth in statutory rates for 2022 was stronger, reflecting an easing of the situation. This was especially the case in central and eastern Member States, where some increases were in double digits.

The largest increases in nominal statutory rates have occurred in seven central and eastern Member States. Hungary’s statutory rate was increased from HUF 167,400 to HUF 200,000 in January 2021, a significant hike of 19.5 percent. Statutory minimum wage rates increased by more than 10 percent n Lithuania, Estonia, Romania, and Croatia, and by around 7 percent in Poland and Czechia. In Slovenia (5 percent) and Slovakia (3.7 percent), increases were more modest. Latvia was the only country where statutory rates remain frozen for 2022, but it should be noted that the non-taxable part of the wage increased.

“In contrast to the rather cautious increases agreed for 2021, the minimum wage hikes negotiated for 2022 have been much more generous, with progress in central and eastern Member States particularly standing out. This positive outlook for nominal rates will ultimately become more nuanced once inflation data for 2022 and progress in real rates are taken into account, providing a fuller picture of the changes in the purchasing power of minimum wage earners,” Ivailo Kalfin, Eurofound Executive Director, said.

(WBJ)