The European Parliament on Wednesday voted in a directive on adequate minimum wages which are expected to enable workers in the EU to cover the cost of their basic needs.

Under the directive, agreed with the Council of the EU in June, setting minimum wages remains the competence of member states but they will have to guarantee decent living conditions for workers, taking into consideration the cost of living and wage levels.

The Council is expected to formally approve the agreement in September, after which member states will have two years to implement the directive.

To assess the adequacy of the legally prescribed minimum wages, member states can define a consumer basket of goods and services with real prices or use the value of 60% of the gross median wage and 50% of the gross average wage, the EP said.

The new directive will apply to all workers in the EU who have an employment contract or an employment relationship. Member states in which the minimum wage is already protected exclusively with collective agreements will not have the obligation to introduce the new rules.

The member states where less than 80% of workers are covered by collective agreements will have to make, in cooperation with social partners, an action plan to increase their scope. In case of violation of the rules, legal protection will be ensured for workers, their representatives and union members.

The directive on adequate minimum wages was adopted with 505 votes for, 92 against and 44 abstentions.