Increase in the minimum wage
As announced on Budget Day 2022, the minimum wages will increase by more than 10 percent next year. With this increase, the government wants to tackle the purchasing power problems. The 7.5 percent increase announced in the Spring Memorandum has been brought forward. This means that the minimum wage, including an increase of 0.55 percent and indexation, will increase by 10.15 percent in 2023.
The increase in the minimum wage is the first since it was introduced in 1969. The government considers it necessary because of the high inflation and the loss of purchasing power. Over the coming year, the expected increase in the minimum wage is 12.1% compared to this year. The announced wage increase also affects the amount of social assistance, the AOW and, among other things, the WIA and the WW.
The cabinet also expects that increase will lead to higher wages for employees who earn up to about 130 percent of the minimum wage. Employees aged 21 and older are entitled to a gross salary of at least 1,934.45 euros per month from next year. That equates to about 14 euros per hour. In the coming year, this group will also benefit from a reduction in income tax, which means that they will have more left over from their gross salary.