Minimum wage requirements within Europe in the context of posting of workers

Minimum wage requirements within Europe

This material gives an overview of the minimum wage requirements within the European Union, European Economic Area and Switzerland (hereafter referred to as “the EU, EEA member states and Switzerland”), what these requirements consist of, as well as what salary components could be considered as part of the minimum wage.

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Mădălina Racovițan

Tax Partner, Taxation Services, Head of People Services

KPMG in Romania

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As businesses recognize the advantages of globalization and digitalization, cross-border enterprises become a significant component of the EU market. Together with cross-border services comes international movement of staff, which is most often seen in the form of international posting of employees.

International postings bring a lot of baggage and lately they have been in the spot light of the European Commission as the currently applicable regulations do not seem to fit today’s reality. Various forms of abusive practice, circumvention and malpractice in the implementation of the Posting Directive have resulted in labour market distortions and “social dumping” in labour intensive sectors of higher wage countries.

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