Credit: Court of Justice of the European Union

Denmark had sought to annul the 2022 directive in its entirety, arguing — with support from Sweden — that legislation on pay goes beyond the EU’s authority.

In today’s judgment, the court dismissed the request to annul the directive and confirmed that it was adopted on a correct legal basis.

The court confirmed the validity of the provisions of the Directive relating to collective bargaining on wage-setting.

However, it annulled two provisions listing the criteria that must be taken into account by Member States with statutory minimum wages, as well as the rule preventing a decrease of minimum wages when they are automatically indexed.

The European Commission has welcomed the ruling and says it is analysing the impact of the annulled provisions.

European Commission president Ursula von der Leyen said: “Every worker in Europe should be able to earn a living.

“Today’s ruling is a milestone for Europeans — it is about dignity, fairness, and financial security.

“The directive will be implemented with full respect for national traditions, the autonomy of social partners and the importance of collective bargaining.

“Our commitment is that work should truly pay.”

Roxana Mînzatu, executive vice-president for social rights and skills, quality jobs and preparedness, added: “Today’s court judgment reinforces the European social model which is based on fair and adequate wages, and strong collective bargaining — bringing both social fairness and economic benefits.

“This is good news for workers, especially those who earn low-wages, and for employers across Europe who pay fair salaries.”