Clubs in the G14 group, which include Liverpool, Arsenal, Manchester United, Barcelona and Bayern Munich, have agreed to the restricitions which will come into force at the start of the 2005-06 season.
Speaking to readingfc.co.uk Howe revealed that he was pleased to hear that Europe's top clubs had made their landmark decision.
"The fact that the biggest clubs in Europe have established wage capping as a percentage of turnover is the right way to go. However, I've always had the belief that the figure should be closer to 60%.
"I would urge the Football League to adopt the same policy, because it would address a lot of the financial problems clubs are facing and allow a stabilisation of player's wages.
"Wage capping will only allow the very best players to be paid high wages. As far as I'm concerned it can't come soon enough."
Meanwhile, Howe went onto confirm that Reading's wage bill has dropped from 100% of their annual turnover to around the 60% mark.