Paid time off work granted to employees each year. EU law requires a minimum of 4 weeks paid leave per year for all workers.

A written contract negotiated through collective bargaining between an employer and a trade union representing workers, covering wages, hours and working conditions.

A person who works in one EU member state while residing in another, commuting regularly across the border. Also known as a frontier worker.

A tax reduction or credit available to taxpayers who financially support dependents such as children or elderly relatives.

The termination of an employee's contract by the employer. EU law and national laws provide various protections against unfair or wrongful dismissal.

The actual percentage of income paid in taxes, calculated by dividing total tax paid by total taxable income. Often lower than the marginal tax rate.

Payments made by employers on top of employee salaries to fund social protection schemes. These represent a significant additional cost of employment.

A legally binding agreement between an employer and employee that sets out the terms and conditions of employment.

The principle that men and women should receive the same pay for the same work or work of equal value. Enshrined in EU law since the Treaty of Rome.

An employment contract with a specific end date or tied to completion of a specific task, as opposed to an open-ended permanent contract.

The total amount of pay before any deductions such as income tax, social security contributions, or pension contributions are removed.

Coverage that pays for medical expenses. In many EU countries, mandatory health insurance is funded through social security contributions.

A tax levied by governments on the income generated by businesses and individuals within their jurisdiction. In the EU, income tax rates and brackets vary by country.

Compensation paid to an employee for damages or losses, such as when an employer terminates a contract without following proper procedures.

The body of legislation governing employment relationships in a country, including rights and obligations of employers and employees.

Official monitoring of workplaces to ensure compliance with employment laws, health and safety regulations, and working conditions standards.

The rate of tax applied to the last unit of income earned. In progressive tax systems, higher income is taxed at higher marginal rates.

A period of absence from work granted to a mother before and after the birth of her child. EU law guarantees minimum 14 weeks maternity leave.

The lowest hourly, daily or monthly remuneration that employers may legally pay to workers. In the EU, each member state sets its own minimum wage.

The amount of pay an employee actually receives after all deductions including income tax and social security contributions have been subtracted from gross salary.

Tax rules that apply to individuals earning income in a country where they do not reside. Often different rates and rules than for residents.

The length of time an employee or employer must give before ending an employment contract. Duration varies by country, contract type and length of service.

Hours worked beyond the normal contractual or statutory working hours. Many EU countries require premium pay for overtime hours.

A period of absence from work available to parents to care for a young child. EU law provides a minimum of 4 months parental leave per parent.

Employment where the employee works fewer hours than a full-time worker. EU law prohibits discrimination against part-time workers.

A period of absence from work granted to a father or second parent after the birth or adoption of a child.

A retirement benefit paid to employees who have contributed to a pension scheme throughout their working life. EU countries have different pension systems.

Regular payments made into a pension fund by employees, employers or both to build up retirement savings. Contribution rates vary by country.

An open-ended employment contract with no fixed end date, offering greater job security and typically stronger legal protections for the employee.

An employee sent by their employer to carry out a service in another EU member state on a temporary basis.

A trial period at the beginning of employment during which either party may terminate the contract more easily, usually with shorter notice.

An official holiday on which employees are generally entitled to a day off work, with pay. The number of public holidays varies by EU country.

Dismissal because the employer needs to reduce the workforce, usually for economic or structural reasons rather than due to employee conduct.

Mandatory periods during which employees must not work. EU law requires at least 11 consecutive hours of rest per 24-hour period.

A document provided by an employer to an employee showing the breakdown of earnings and deductions for a pay period. Required by law in most EU countries.

Compensation paid to an employee upon termination of employment, typically calculated based on length of service and final salary.

Paid or unpaid time off work due to illness or injury. Rules vary significantly across EU member states.

A set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labour markets, diminishing people's exposure to risks.

Mandatory payments made by employees and employers to fund social protection schemes including pensions, healthcare, and unemployment benefits.

A fixed amount that can be deducted from gross income before calculating income tax, representing typical work-related expenses.

A range of income that is taxed at a specific rate in a progressive tax system. Income that falls within each bracket is taxed at that bracket's rate.

The amount of income subject to tax after deductions and allowances have been applied. The basis on which income tax is calculated.

A work arrangement where employees work from a location other than the employer's premises, typically from home, using digital tools.

The maximum number of days per year a cross-border worker can telework from their country of residence without changing their tax or social security status.

An organisation of workers that collectively negotiates with employers on wages, working conditions and other employment terms.

Financial support provided to workers who have lost their jobs involuntarily. Eligibility and amounts vary by country.

Value Added Tax — a consumption tax placed on goods and services at each stage of production or distribution. The EU requires a minimum standard VAT rate of 15%.

The hours during which an employee is required to work. EU law sets a maximum average of 48 hours per week including overtime.

EU legislation limiting working time to a maximum of 48 hours per week averaged over a reference period, ensuring minimum rest periods.

A group of employee representatives within a company that consults with management on issues affecting workers. Required in companies above certain size thresholds in many EU countries.