Another year has flown by, which means that minimum wage of 2022 is almost old news. It is therefore important for companies to be aware of the minimum wage in 2023. You can read more about that in this blog!
Increase of 10.15 percent
This year, the government has chosen to raise the minimum wage by a whopping 10.15 percent in one fell swoop. With this increase, the government wants to ensure that working becomes more rewarding. Initially, the planned increase was not this extreme, but for the first time since its introduction in 1969, it was decided to adopt an additional increase in the minimum wage in the Netherlands. This proposal was made by Social Affairs and Employment Minister Van Gennip and the council of ministers agreed to it.
12.40 euros gross per hour
This year, the government has chosen to raise the minimum wage by a whopping 10.15 percent in one fell swoop. With this increase, the government wants to ensure that working becomes more rewarding. Initially, the planned increase was not this extreme, but for the first time since its introduction in 1969, it was decided to adopt an additional increase in the minimum wage in the Netherlands. This proposal was made by Social Affairs and Employment Minister Van Gennip and the council of ministers agreed to it.
Exceptionally high inflation
So by now you know what the minimum wage Netherlands will be in 2023 for all working people aged 21 or older. But you are probably curious about the reason for this unique increase. Of course, it has to do with the exceptionally high inflation we are currently suffering in our country. The cabinet has therefore decided on Budget Day to raise the minimum wage substantially in one fell swoop. This way, Dutch people experience less of the negative impact of high inflation on their disposable income. People with middle and lower incomes will thus have a better outlook and be better able to withstand (possible) financial setbacks. The government expects that employees with an income just above the minimum wage will also benefit from the increase, as there will be a spill-over effect.
From 2.5 percent to 10.15 percent
However, the fact that the minimum wage in the Netherlands is suddenly rising so sharply is quite a surprise. After all, the cabinet had first announced that the minimum wage would rise by 2.5 percent for three years. Due to high inflation, it has instead chosen to make the increase a lot higher, namely 10.15 per cent..
What this means for increases in the future is still unclear. For instance, the ‘Minimum Wage Indexation Act’ below has also been proposed. Keep a close eye on Salure’s news for that!
Proposal: minimum wage indexation act
In recent years, the minimum wage has become worth less and less compared to the average wage. In 1976, the minimum wage was still 68% of the average wage in the Netherlands; now it is only 43%. So the minimum wage has not risen as fast as the average wage. In addition, the minimum wage is no longer enough to make ends meet. The Nibud, for instance, calculated that a family with two children living on minimum wage is €217 short every month. To better balance this, the ‘Minimum Wage Indexation Act’ was proposed.
What does the new act entail?
Currently, the minimum wage is determined each year in January and indexed in July based on contract wage increases, as published by the Central Planning Bureau. These wage increases are based on the base wage stated in the contract, law or collective labour agreement. So they do not include wage increases due to a promotion or an increase in the salary scale.
As the Dutch have gotten better and better jobs in recent decades, average wages have risen more than contract wages. So the minimum wage no longer matches what is actually earned on average.
That is why the indexation of the minimum wage in July is also intended to be based on average wages. If there is a difference between the average wage increase and the average contract wage increase over the past 5 years, this will be corrected.
If the minimum wage exceeds 60% of the average wage, this correction will be omitted.
The idea is also that benefits and the state pension linked to the minimum wage will rise with it.
Note! This proposal has yet to be approved by the Senate.
Minimum wage amounts in 2023
By now, you know that the minimum wage in 2023 has increased substantially from the minimum salary we had in 2022. This creates the following amounts:
| Age | Per month | Per week | Per day |
|---|---|---|---|
| Minimum wage 21 years+ | € 1,934.40 | € 446.40 | € 89.28 |
| Minimum wage 20 years | € 1,547.50 | € 357.10 | € 71.42 |
| Minimum wage 19 years | € 1,160.65 | € 267.85 | € 53.57 |
| Minimum wage 18 years | € 967.20 | € 223.20 | € 44.64 |
| Minimum wage 17 years | € 764.10 | € 176.35 | € 35.27 |
| Minimum wage 16 years | € 667.35 | € 154.00 | € 30.80 |
| Minimum wage 15 years | € 580.30 | € 133.90 | € 26.78 |
However, it is expected that not just the minimum wage, but also collective wages will rise sharply in 2023. So it could be that your sector has a higher minimum wage. You can check the collective labour agreement for your company for this.
Minimum wages 2023 for VET
You may pay an employee with an employment contract based on a vocational education and training (VET) programme a lower wage than the minimum wage. From 1 January 2023, the following VET wages will therefore apply:
| Age | Per month | Per week | Per day |
|---|---|---|---|
| 20 years (VET) | € 1,189.65 | € 274.55 | € 54.91 |
| 19 years (VET) | € 1,015.55 | € 234.35 | € 46.87 |
| 18 years (VET) | € 880.15 | € 203.10 | € 40.62 |
The minimum wage per hour
In 2023, the Minimum Wage and Minimum Holiday Allowance Act does not yet contain a minimum hourly wage; this adjustment is only likely to apply from 2024. In 2023, it is therefore still possible for entrepreneurs to calculate the hourly wage themselves. What this amount will be depends on how full-time works within your company. This is because some companies consider full-time to be 40 hours, while other organisations actually apply a full-time contract of 36 or 38 hours. This is the converted minimum hourly wage in the Netherlands by age:
| Age | With 36 hours | With 38 hours | With 40 hours |
|---|---|---|---|
| Hourly wage 21 years+ | € 12.40 | € 11.75 | € 11.16 |
| Hourly wage 20 years | € 9.92 | € 9.40 | € 8.93 |
| Hourly wage 19 years | € 7.45 | € 7.05 | € 6.70 |
| Hourly wage 18 years | € 6.20 | € 5.88 | € 5.58 |
| Hourly wage 17 years | € 4.90 | € 4.65 | € 4.41 |
| Hourly wage 16 years | € 4.28 | € 4.06 | € 3.85 |
| Hourly wage 15 years | € 3.72 | € 3.53 | € 3.35 |
It is worth noting that these amounts are subject to change. If you want to calculate yourself what the minimum wage per hour is within your company, you can do so on the central government’s website. You can find a handy calculation tool there!
Maximum wage in 2023
Dutch law does not say anything about a maximum wage, but a collective labour agreement can. It may in fact contain guidelines or standards about a maximum salary scale in your industry or a salary ceiling per position. Is no collective labour agreement applicable to the employee? Then, as an employer, you may decide how high this employee’s salary will be. There is no maximum here at all.
You are now aware of the 2023 minimum wage in the Netherlands. As an employer, you are obliged to pay this to all your employees. However, know that the minimum wage in our country is adjusted every six months. Therefore, you should always change your employees’ wages in your payroll in time!
