Politicians in Brussels have reached a deal on how EU countries will ensure adequate minimum wages in a move that will protect workers at a time of soaring inflation and a cost of living crisis.

In the deal agreed between the European Council and parliament on Tuesday, member states will collect data on minimum wage coverage, assess prices for common household items and promote the principle of collective bargaining to help enforce companies to pay fair salaries.

“This is a good day for social Europe. We have reached an agreement on the directive on adequate minimum wages in the EU. This is especially important at a time when many households are worried about making ends meet,” said Nicolas Schmit, European commissioner for jobs and social rights.