European decency threshold
Encyclopedia
The Social Charter
initially defined what many UK campaigning groups termed the Council of Europe decency
threshold in the 1960s as 68% of average earnings within a national economy. The definition was modified to that of 60% of net
earnings in order to take account of the difficulties experienced in taking into account initiatives such as redistributive tax systems when calculating adequate incomes.
There are a number of anomalies between the previous use of this threshold by UK campaigning groups and the way in which it is understood by the Secretariat of the European Social Charter. The exact origins of the term 'Council of Europe Decency Threshold' are vague, but it is said to be an incorrect term as the Council of Europe did not create it. It is therefore now more commonly referred to as the 'European Social Charter Adequate Remuneration Threshold' or ESCART.
Many pressure groups in the UK used the original method of calculation to call for a higher minimum wage
. Before its closure, the Low Pay Unit used this threshold in campaigning in addition to calling for a minimum wage of half male median
earnings, rising to 2/3 over the next few years. However, it (like many other organisations) had expressed reservations about the usefulness of the Threshold following the move to a definition of 60% of net average earnings, primarily because this was a far lower monetary amount than the Threshold as previously defined.
The Scottish Low Pay Unit, an independent organisation with similar aims to the now-defunct London based Low Pay Unit, continue to campaign for a higher National Minimum Wage in this way although they do not use the ESCART due to difficulties in obtaining accurate net earnings figures for the UK. They have also produced a briefing outlining the advantages and disadvantages of the calculation.
European Social Charter
The European Social Charter is a Council of Europe treaty which was adopted in 1961 and revised in 1996. The Revised Charter came into force in 1999 and is gradually replacing the initial 1961 treaty...
initially defined what many UK campaigning groups termed the Council of Europe decency
Decency
Decency is the quality or state of conforming to social or moral standards of taste and propriety.-See also:*Taste *Communications Decency Act*Public indecency*Indecent exposure*Sodomy law*Norm *Grotesque body...
threshold in the 1960s as 68% of average earnings within a national economy. The definition was modified to that of 60% of net
Net pay
Net pay is the remaining amount after deductions from the gross salary, where net means ultimate.Example deductions: income taxes, trade union dues, it mean authorized deduction for a retirement...
earnings in order to take account of the difficulties experienced in taking into account initiatives such as redistributive tax systems when calculating adequate incomes.
There are a number of anomalies between the previous use of this threshold by UK campaigning groups and the way in which it is understood by the Secretariat of the European Social Charter. The exact origins of the term 'Council of Europe Decency Threshold' are vague, but it is said to be an incorrect term as the Council of Europe did not create it. It is therefore now more commonly referred to as the 'European Social Charter Adequate Remuneration Threshold' or ESCART.
Many pressure groups in the UK used the original method of calculation to call for a higher minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
. Before its closure, the Low Pay Unit used this threshold in campaigning in addition to calling for a minimum wage of half male median
Median
In probability theory and statistics, a median is described as the numerical value separating the higher half of a sample, a population, or a probability distribution, from the lower half. The median of a finite list of numbers can be found by arranging all the observations from lowest value to...
earnings, rising to 2/3 over the next few years. However, it (like many other organisations) had expressed reservations about the usefulness of the Threshold following the move to a definition of 60% of net average earnings, primarily because this was a far lower monetary amount than the Threshold as previously defined.
The Scottish Low Pay Unit, an independent organisation with similar aims to the now-defunct London based Low Pay Unit, continue to campaign for a higher National Minimum Wage in this way although they do not use the ESCART due to difficulties in obtaining accurate net earnings figures for the UK. They have also produced a briefing outlining the advantages and disadvantages of the calculation.