What will be the consequences of the CJEU ruling on the Directive on a minimum wage in the EU?
The draft minimum wage bill provides for a four-year minimum wage adjustment mechanism based on specific criteria, such as the purchasing power of a minimum wage, the general level of wages, wage distribution, wage growth rates and long-term productivity levels. In the ruling of 11 November 2025 (C-19/23), the Court of Justice of the EU declared that that criteria is invalid. As a result, the government will probably have to re-examine the bill, and consult social partners.
The judgment in Case C-19/23 concerned Directive (EU) 2022/2041 of the European Parliament and of the Council on adequate minimum wages in EU countries. Denmark lodged a complaint against the Directive arguing that Brussels had exceeded its authority by interfering in national wage-setting systems.
The court did not invalidate the entire Directive, but repealed the provisions on the criteria for setting and updating that would have ensured an adequate minimum wage and the provision on an automatic mechanism for indexation that prohibited reduction of statutory minimum wages.
Despite the changes, the CJEU confirmed that the European Union has the right to adopt a Directive on an adequate minimum wage, leaving the remainder of it in force.
Even though the ruling does not directly affect Polish companies, it compels the government to consider whether the criteria that was indicated is the most appropriate for us for increasing the minimum wage.