Minimum wages rise across Europe as inflation eases

National minimum wages continued to rise across Europe in 2026, with the largest increases again recorded in central and eastern Europe according to Eurofound’s latest report, Minimum wages in 2026: Annual review.

Gross national minimum wages increased between January 2025 and January 2026 in 21 of the 22 Member States with a national minimum wage. The largest increases were again recorded in central and eastern Europe. Slovenia recorded the largest increase, at 16%, followed by Bulgaria, Slovakia, Lithuania and Hungary, where increases were around 11–12%. The increases continue a longer-term trend towards upward convergence in minimum wage levels across Europe.

Minimum wage earners also gained purchasing power in virtually all Member States in 2026, as lower inflation in January 2026 more than offset increases in nominal minimum wages. Romania was the only exception, with its minimum wage frozen in January and increase taking effect from July 2026

The EU Minimum Wage Directive appears to have been a factor driving the uprates in several Member States, with some using indicative reference values linked to average or median wages when deciding their new minimum wage rates.

Several Member States introduced new procedures in 2025 following its transposition, but rates for 2026 were still largely determined through established national processes.

“After years in which governments were focused on protecting workers from high inflation, attention is increasingly turning to the adequacy of minimum wages and improving living standards for low-paid workers,” said Ivailo Kalfin, Executive Director of Eurofound.

The report also highlights developments at the lower end of collectively agreed wage scales, where statutory minimum wages are increasingly catching up with the lowest wage rates. This frequently compresses wage scales and can potentially make it harder for social partners to negotiate significantly higher rates for more experienced and skilled employees.

In some cases, national minimum wages are influencing collectively agreed wage floors, with them increasingly being tied to national minimum wages through provisions in collective agreements. Collective bargaining is also placing greater emphasis on non-wage benefits in some countries and sectors.

These developments are putting a renewed focus on collective bargaining. In countries where collective bargaining coverage is below 80%, which includes the majority of Member States, the Directive requires action plans to be put in place. A growing number of these plans to strengthen social partner involvement began to emerge in 2025.

• Read the full report: https://www.eurofound.europa.eu/en/publications/all/minimum-wages-in-2026-annual-review

More information on minimum wage:

• Article: National minimum wages in the EU: policy-driven growth, continued convergence and increased proximity to negotiated wages
• Article:Real growth in minimum wages in 2026, amid both progress and pullback on Member States’ ambitions
• Topic page: Minimum wage
• National minimum wages, 2026 (chart) | Eurofound