23 February 2017 - Blog, News
Minimum Wages across the EU | PaycheckPlus Payroll Compliance

See how EU member states minimum wage rates compare

On the back of our previous blog comparing the upcoming UK minimum wage change with the recent Irish minimum wage change (read it here), we thought that it would be interesting to take a Europe-wide look at minimum wages.

To be payroll compliant, the minimum wage rate paid to staff in each country must be met by companies to avoid penalties. This can be difficult and time consuming particularly for multinational companies whose core business operations are not payroll related.

Minimum wages across EU member states

Eurostat research shows that as of 1st January 2017 Luxemburg has the highest minimum wage of the EU member states followed by Ireland and then the Netherlands.  The UK has the 7th highest minimum wage, just below France in 6th position. Bulgaria has the lowest minimum wage in the EU with a rate that is 9 times lower than Luxemburg’s.

The below chart provides a snapshot of the minimum wage rates within the EU (in € per month):

Minimum wages EU chart | PaycheckPlus Payroll Compliance

(Source: Eurostat, Minimum wages in the EU Member States, as of 1st January 2017)

Note: in many countries in Europe the national minimum wage is a fixed monthly rate. To help facilitate a comparison, the level of the minimum wage for Ireland and the UK is converted into a monthly rate according to the following conversion factors supplied to Eurostat by the countries:

United Kingdom: (hourly rate x mean basic paid hours per week for full-time employees in all sectors x 52.18 weeks) / 12 months. The national minimum wage is £7.20 per hour. It’s worth noting that April 1st 2017 will see the UK minimum wage increase to £7.50 per hour. There are also a number of exceptions to the minimum wage, for example if a person is under 25 or is an apprentice the minimum wage rate is reduced (more info here).

Ireland: (hourly rate x 39 hours x 52 weeks) / 12 months. The national minimum wage is €9.25 per hour. There are exceptions to this, apprentices, people employed by close relatives, if a person is under 18 and if a person over 18 has 2 or less years employment experience, etc.

The following Eurostat image provides a map view of the minimum wage rates:

Minimum wages EU map | PaycheckPlus Payroll Compliance

(Source: Eurostat, Minimum wages in the EU Member States, as of 1st January 2017)

PaycheckPlus – Payroll Outsource Provider

Payroll compliance requirements change from country to country and are regularly updated within each country. It’s imperative that companies stay up to date and be compliant with the legislations in the countries that their staff are employed. Companies can incur severe penalties if they are not compliant but being compliant can be difficult for companies and staff that don’t have payroll as a core focus. However, here at PaycheckPlus we specialise in payroll and provide payroll solutions tailored to the specific needs of businesses. We provide managed payroll, auditing, consultancy, payroll workshops and many other services that can ensure payroll compliance. We also provide a cover service for payroll staff which gives companies (and payroll staff) peace of mind that their employees will still get paid even if their payroll team becomes ill or goes on leave.

To ensure payroll accuracy and for expert support contact PaycheckPlus today.

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