Minimum salary changes in The Netherlands
Regulation of the Minister of Social Affairs and Employment of 17 April 2023, no. 2023-0000203905, adjusting the statutory minimum wage as of 1 July 2023
The Minister for Social Affairs and Employment,
Having regard to Article 14, second and tenth paragraphs, of the Minimum Wage and Minimum Holiday Allowance Act;
Decision:
Article 1
The amounts referred to in Article 8, first paragraph, points a, b and c, of the Minimum Wage and Minimum Holiday Allowance Act will be determined as follows with effect from 1 July 2023 respectively:
- € 1,995.00;
- € 460.40;
- € 92,08.
Article 2
This regulation will enter into force on 1 July 2023.
This regulation will be published in the Government Gazette with the explanatory notes.
The Minister for Social Affairs and Employment
Explanation
The basic principle of the Minimum Wage and Minimum Holiday Allowance Act (WML) is that the general development of prosperity should, if possible, also be reflected in the incomes of employees with a minimum wage and of benefit recipients. This principle is contained in the main rule of Article 14 of the WML, which assumes a link between the minimum wage and social benefits and the average contract wage development.
Deviation from the main rule is possible if there is an excessive wage development or a volume development in social security schemes (Article 14, fifth paragraph, WML). The explanatory note to this paragraph indicates that the grounds for derogation are current if the ratio between inactive and active persons, the so-called I/A ratio, exceeds the applicable standard. The government chooses not to deviate from the main rule, because, among other things, wage developments and volume developments are not of such a nature that this is necessary.
Article 14, first to third paragraphs, of the WML regulates the adjustment of the minimum wage. This is based on the average of the percentage development of contract wages in the market sector, the premium and subsidised sector and in the public sector, as calculated by CPB.
The adjustment rate is fixed as follows, in accordance with the provisions of the law. The starting point is the contract wage development in 2023 as published in the CEP 2023 being 4.925%. Half of the CPB estimate for the contract wage increase in 2023 as published in the 2022 Macroeconomic Outlook will be deducted from this. After all, this part has already been included in the indexation of January 2023, and amounts to 0.5 x 3.605% = 1.803% The result of this calculation is 3.123% and constitutes the unfinished adjustment percentage. The (unfinished) statutory minimum wage, as calculated for the adjustment as of 1 January 2023, will be increased by this percentage.
After the (legal) completion, the gross statutory minimum wage as of 1 July 2023 is € 1,995.00 per month, € 460.40 per week and € 92.08 per day. [1] The adjustment rate after rounding is 3.13%. The corresponding statutory minimum youth wages are regulated in the Decree on minimum youth wage2.
| Age | Staffing | Per month | Per week | Per day |
| 21 years and older | 100% | 1995,00 | 460,40 | 92,08 |
| 20 years | 80% | 1596,00 | 368,30 | 73,66 |
| 19 years | 60% | 1197,00 | 276,25 | 55,25 |
| 18 years | 50% | 997,50 | 230,20 | 46,04 |
| 17 years | 39,5% | 788,05 | 181,85 | 36,37 |
| 16 years | 34,5% | 688,30 | 158,85 | 31,77 |
| 15 years | 30% | 598,50 | 138,10 | 27,62 |
For employees who work on the basis of an employment contract entered into in connection with a vocational training pathway (BBL), alternative scales apply, which are laid down in the Minimum Youth Wage Decree. For pupils in the bbl aged 15 to 17 years and 21 years, the above amounts apply. Contrary to the above , the corresponding statutory minimum youth wages apply to pupils in the BBL aged 18 to 20 years:
| Age | Staffing BBL | Per month | Per week | Per day |
| 20 years | 61,50% | 1226,95 | 283,15 | 56,63 |
| 19 years | 52,50% | 1047,40 | 241,70 | 48,34 |
| 18 years | 45,50% | 907,75 | 209,50 | 41,90 |
According to Article 12 of the WML, the minimum (youth) wage is proportionally lower if the employee has agreed on a shorter working time than the normal working hours. This is the case, for example, with part-time work.
The minimum wage amounts are expressed in amounts per month, per week and per (working) day. The law does not currently have a uniform statutory minimum hourly wage. The hourly wage may vary per sector, depending on the number of hours that count as normal working hours. Normal working hours are defined as the working hours customary in the sector concerned for full-time employment. In most collective agreements, this working time for full-time employment is set at 36, 38 or 40 hours per week. This will change when the Minimum Hourly Wage Introduction Act comes into force[2]. With the introduction of a statutory minimum hourly wage, the minimum hourly wage is the same for every employee, regardless of normal working hours. The intended date of entry into force of this law is 1 January 2024. The minimum monthly wage is converted into an hourly wage based on a normal working time of 36 hours per week. The statutory minimum hourly wage and its (future) indexations are published in the Government Gazette. The statutory minimum hourly wage as of 1 January 2024 will be published at the same time as the next regular indexation on 1 January.
Following a commitment to the House of Representatives, the derived minimum hourly wages for these normal working hours are published in the explanatory memorandum. [3] The diagram below shows the rounded gross amounts per hour, calculated on the basis of the statutory minimum weekly wage for working hours of 36, 38 and 40 hours per week respectively.
Derived gross minimum wage per hour after rounding (upwards) as of 1 July 2023 at a usual working time of 36, 38 and 40 hours is published in the following table. In this case, a rounding upwards is used at the rounding, in order to prevent an unintentional payment that is lower than the statutory minimum wage as set out in Article 1 of this regulation. It should be noted that only the amounts fixed in Article 1 of these rules concern the statutory minimum wage and are legally valid.
Gross minimum wage per hour as of 1 July 2023 for a normal working time for full-time employment of:
| Age | 36 hours a week | 38 hours a week | 40 hours per week |
| 21 years and older | 12,79 | 12,12 | 11,51 |
| 20 years | 10,24 | 9,70 | 9,21 |
| 19 years | 7,68 | 7,27 | 6,91 |
| 18 years | 6,40 | 6,06 | 5,76 |
| 17 years | 5,06 | 4,79 | 4,55 |
| 16 years | 4,42 | 4,19 | 3,98 |
| 15 years | 3,84 | 3,64 | 3,46 |
Gross minimum wage per hour for employees working on the basis of an employment contract entered into in connection with a BBL as of 1 July 2023 with a normal working hours for a full-time employment of:
| Age | 36 hours a week | 38 hours a week | 40 hours per week |
| 20 years | 7,87 | 7,46 | 7,08 |
| 19 years | 6,72 | 6,37 | 6,05 |
| 18 years | 5,82 | 5,52 | 5,24 |
The Minister for Social Affairs and Employment,
[1] As of January 1, 2023, it was gross statutory minimum wage € 1,934.40 per month, € 446.40 per week and € 89.28 per day (Stb. 2022, 381). 2 Stb. 1983, 300
[2] Parliamentary Papers I, 2021/2022, 35335, A.
[3] Parliamentary Papers II, 2007/2008, 31200 – XV, no. 84, p. 2.
