5 March 2018

Deutsche Welle: EU moves toward wage equality for foreign workers

It is not yet law, but the principles are now clear: Posted workers sent from their home country to another in the European Union should, in future, receive higher wages and have the same rights as local workers. "This is very good news," said Marianne Thyssen, the European Commissioner for Social Affairs and Labor Mobility. "We don't want wage dumping." [...]

Social security contributions and income tax will continue to be payable in the home country of a posted employee. This means that a Polish company that sends its workers to Frankfurt can continue to pay the lower social security contributions in Poland. This will enable them to compete with domestic German companies. [...]

Until now, Poland in particular has been against any reform. With 500,000 posted workers it has the highest number among EU member states. However, EU Commissioner Thyssen has the impression that the Polish side will accept the compromises. "We can also pass the new law with a qualified majority," Thyssen said, which means that it can happen, if necessary, without Poland.

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