[Netherlands] More substantial wage increase set for 2023

The minimum wage in the Netherlands will rise more quickly than the Cabinet previously announced as part of an effort to improve the purchasing power of people in lower-income categories, NL Times reports.

Previously the four political parties which joined together to form the Cabinet had agreed to increasing the minimum wage in 2024 and in 2025 by a combined total of 7.5 per cent.

Instead, the plan will be implemented sooner, with the first raise to take place in 2023, according to reporting from broadcaster NOS. Increases will then happen in the two subsequent years. The three stages will still combine for a 7.5 per cent pay hike.

At least the first of the increases will also be linked to an increase in the state pension, AOW sources close to the Cabinet told NOS. It is not clear if the other two minimum wage increases will also trigger a pension bump. Minimum wage increases have been coupled to AOW increases for years, but the Cabinet reportedly wanted to at least temporarily halt the practice. It was met with strong objections from opposition parties, from which the Cabinet needs to win support to get proposals past the Eerste Kamer, where the Cabinet does not have majority support.

The four political parties - VVD, D66, CDA, and ChristenUnie - agreed to the measure during discussions on the Spring Memorandum, an update on the financial state of the Netherlands that includes announcements about any modifications to the budget. The Council of Ministers will discuss the measure further during their regular weekly meeting on May 20, NOS reported.

The minimum wage in the Netherlands will rise more quickly than the Cabinet previously announced as part of an effort to improve the purchasing power of people in lower-income categories, NL Times reports.

Previously the four political parties which joined together to form the Cabinet had agreed to increasing the minimum wage in 2024 and in 2025 by a combined total of 7.5 per cent.

Instead, the plan will be implemented sooner, with the first raise to take place in 2023, according to reporting from broadcaster NOS. Increases will then happen in the two subsequent years. The three stages will still combine for a 7.5 per cent pay hike.

At least the first of the increases will also be linked to an increase in the state pension, AOW sources close to the Cabinet told NOS. It is not clear if the other two minimum wage increases will also trigger a pension bump. Minimum wage increases have been coupled to AOW increases for years, but the Cabinet reportedly wanted to at least temporarily halt the practice. It was met with strong objections from opposition parties, from which the Cabinet needs to win support to get proposals past the Eerste Kamer, where the Cabinet does not have majority support.

The four political parties - VVD, D66, CDA, and ChristenUnie - agreed to the measure during discussions on the Spring Memorandum, an update on the financial state of the Netherlands that includes announcements about any modifications to the budget. The Council of Ministers will discuss the measure further during their regular weekly meeting on May 20, NOS reported.