Minimum wages to rise in 2023
It was announced on Budget Day that statutory minimum wages in the Netherlands would rise by over 10% over the coming year, mainly in order to limit loss of purchasing power. An increase of 7.5% will be introduced in two stages (3.75% on 1 January 2024 and 3.61% the next year). On top of that, standard indexation will result in minimum wages on 1 January 2025 being 14.86% higher than on 1 January 2022.
No increase in wage-related benefits in 2024 and 2025
The increases announced for the coming years are designed primarily to help those on the lowest incomes. Benefits linked to minimum wages, such as unemployment benefit and disability (WIA) benefit, will not increase in 2024 or 2025. And neither will payments for maternity and parental leave. However, these wage-related benefits will be indexed.
Minimum wages will increase by 8.05% from 1 January 2023 and will be indexed in the standard way. Based on the latest estimates, this means minimum wages rising by a total of 10.15% between 1 July 2022 and 1 January 2023. From 1 January 2023, therefore, the minimum monthly wage will be €1,934.40 (€446.40 per week and €89.28 per day).
Wage-related benefits to rise in 2023
The increase scheduled for 2023 will affect all benefit payments linked to the minimum wage. And unlike the increases previously announced for 2024 and 2025, people receiving benefits above the minimum wage level will also benefit from the rise in the minimum wage announced for 2023.
Rising wage bills for employers
Higher minimum wages translate directly into higher wage bills for employers. This applies not only to salaries of employees on minimum wages, but also to employees in pay scales above that level, given that these employees are likely to up their wage demands. Total wage bills in 2023 (including employer contributions) are therefore forecast to rise by €2.5 billion.
Source: Salaris Vanmorgen