Malta has highest minimum wage among new EU states

Malta has the highest minimum wage among the new European Union member states.

According to statistics released by Eurostat, the EU's statistical arm, the Maltese minimum wage at the beginning of this year stood at €557 monthly (Lm241). Just a year before, Malta's minimum wage was five per cent less at Lm233 per month, or €542.

At the beginning of this year, the minimum monthly wage in Latvia was only €116 (Lm50.4), in Poland €205 (Lm89) and in Portugal, €437 (Lm 190).

Malta's high minimum wage is also shown through a different calculation.

While in the majority of EU member states the minimum wage is less than 50 per cent of the average monthly gross earnings, in Malta this is not so. Maltese minimum wage earners are being paid 55 percent of the average gross earning currently being paid in the industry and services sectors.

However, the Maltese minimum wage is still much lower than that offered in some of the oldest members of the European club.

The highest minimum wage is paid in Luxembourg where a minimum salary of €1,467 (Lm638) a month is offered. The situation is similar in the Netherlands, Belgium, the UK, France and Ireland with minimum wages surpassing the €1,000 (Lm435) mark monthly.

The situation in the candidate countries is much worse.

Compared to the salary of €557 monthly paid to a Maltese minimum wage earner, a Romanian will only have to be paid €72 (Lm31) for the same job while a Bulgarian will receive €77 (Lm33) monthly. Both countries are next in line to join the EU in the beginning of 2007.

At present, a minimum wage is established in 18 out of the 25 member states of the EU. It is fixed by the government, usually after consultation with the social partners and is enforced by law. The minimum wage applies to all employees in the economy and all occupations.

In the US, the most advanced economy in the world, the minimum wage last January stood at €666 (Lm289).

In its analysis, Eurostat said that the percentage of full time employees with earnings at the minimum wage level is markedly different between countries.

According to the latest available data, which goes back to the situation in January 2003, only 2.5 per cent of the Maltese workforce receives a minimum wage salary.

This compares well to the situation in Slovakia, Spain, the UK, the Czech Republic, the Netherlands, Slovenia and Ireland where the percentage of employees on the minimum wage was between 0.4 percent and 3.1 per cent.

In the US, the figure stood at 1.4 percent.

In contrast, the percentage in Estonia was 6.4 percent, in Hungary 8.1 percent, in Lithuania 10.2 per cent, in Romania 12.2 percent, in France 13.4 percent and in Luxembourg 16.9 per cent.

The percentage of females on the minimum wage was usually higher than the corresponding percentage for males, except in Hungary.