Advancing the EU social market economy: adequate minimum wages for workers across Member States
![](https://ec.europa.eu/newsroom/repository/picture/2020-45/photo-news4-225_70786.jpg)
date: 05/11/2020
When set at adequate levels, minimum wages not only have a positive social impact, but also bring wider economic benefits as they reduce wage inequality, help sustain domestic demand and strengthen incentives to work. Adequate minimum wages can also help reduce the gender pay gap, since more women than men earn a minimum wage. The proposal also helps protect employers that pay decent wages to workers by ensuring fair competition. The current crisis has hit sectors with a higher share of low-wage workers particularly hard. These include the cleaning, retail, health and long-term care and residential care sectors. Ensuring a decent living for workers and reducing in-work poverty is not only important during the crisis but also essential for a sustainable and inclusive economic recovery.