2019 Brings Minimum Wage Increases Across The European Union

Author:Ms Erika Collins, Daniel Ornstein and Tony S. Martinez
Profession:Proskauer Rose LLP
 
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The New Year has brought an increase in minimum wages across the majority of European Union member countries. While most of these changes have been minimal, France and Spain, in particular, announced considerable increases to their respective minimum wages at the end of 2018.

From the beginning of his tenure in May 2017, French President Emmanuel Macron has passed numerous reforms aimed at stimulating economic growth within the country. Many of these reforms have met opposition from the French people, ultimately culminating in the "Yellow Vest" Movement ("Movement"). Since November 2018, the Movement has seen thousands of people across France take to the streets to protest President Macron's policies.

On December 10, 2018, after weeks of political pressure applied by the Movement, President Macron announced a series of concessions and called on the French people to come together. In his address, Macron: (i) announced an increase to the minimum wage; (ii) announced that taxation on overtime pay would be abolished; and (iii) called on employers to pay tax-free year-end bonuses to employees.

President Macron announced that France's minimum wage would increase by100 per month in 2019. Employers will not be responsible for this additional compensation, however. Instead, the French government will foot the bill. As part of his concessions, President Macron also noted that overtime compensation would no longer be subject to taxation, effective January 1, 2019. While this abolition of taxation on overtime pay was previously scheduled to go into effect on September 1, 2019, President Macron's concession accelerated that timeline...

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