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

Minimum wage requirements within Europe

Our main purpose for the KPMG Guide on Posting of Workers is to give companies an overview of the potential costs and obligations related to mobile workers. The intention is for employers to understand the general principles around posting of workers, in order to be able to properly plan the activity of their workforce. Also, the guide includes information on the minimum wage levels and specific registration procedures required in each of the Member States.

Mădălina Racovițan

Tax Partner, Taxation Services, Head of People Services

KPMG in Romania


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Minimum wage survey

The freedom to provide services across EU Member States is one of the cornerstones of the Single Market. Free movement of services means that companies can provide a service in another Member State without needing to establish themselves in that country. To do that, they must be able to send their employees to another Member State to carry out the tasks required.

Regulating the working conditions applicable to those workers is therefore necessary for the smooth functioning of the Single Market. And regulations are becoming clearer but also stricter, with every passing year.

In this respect, when using posted workers, employers must make sure they comply with the labor law requirements of the Posting Directive – including minimum wage requirements, as well as the country-specific requirements under the Posting Directive and the Enforcement Directive in relation to registration with the host country authorities, prior to the date of arrival.

Amid globalization, digital transformation and greater desire for flexibility, compliance with legal requirements is creating an extraordinary challenge for organizations.

To help companies meet their legal obligations in relation to posting of workers, KPMG has initiated a series of annual surveys covering minimum wage and registration requirements within the European Union, European Economic Area and Switzerland.

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