Salary-Setting Mechanisms Across the EU

Abstract

Eurofound has a considerable body of research findings looking at how salary levels are set in EU Member States. This report looks at the mechanisms used to determine statutory minimum wages, the use of variable pay schemes in companies in the EU, and national systems of supplementary pay. The analysis finds that variable pay usually represents a fairly significant percentage of total salary levels, ranging from 5% to 11% in most of the countries where information is available. This ad hoc report was drawn up in response to a request from the Bulgarian EU Presidency to provide information on current debates in the country.