Based on the Netherlands Bureau for Economic Policy Analysis (CPB) the Dutch economy is steadily growing every year, which leads to a decrease in unemployment and an increase of salaries for 2018. However, experts are being careful with speculating this forecast due to instability caused by Brexit and the unstable political situation in the United States.
General information
According to the Central Bank and CPB, contract wages should increase 2% on average in 2018. One of the main reasons of growth is declining unemployment in the country, from 6% in 2016 to 4.9% in 2017 and in 2018 to 4.3% ¬– which will be at the lowest point since 2008. The second reason is the demand for workers, which is at the highest also since 2008. Almost 200 thousand jobs were created in 2017.
Even though the economy is growing and it is forecasted that the salaries will increase, there are some groups and sectors that will do much better that the others. For example, benefit recipients and pensioners might suffer. Talking about sectors, the highest salaries in 2017 are in Technology, IT, Logistics, Health Care and Finance, which naturally also have the highest growth in amount of vacancies available. This situation is expected to continue in 2018 as well.
Legislative changes on 1st January 2018
1. Minimum wage and minimum youth wage change. The minimum wage for employees aged 23 and above will be: € 1,578.00 per month, € 364.15 per week and € 72.83 per day.
The youth wage is regulated by the Minimum Youth Wage Decree and applicable for pupils aged 15 – 17, and the salary is, for instance, for 15-year-olds € 473,40.
2. Minimum wage at piece rates, additional work and agreement of remuneration.
• Minimum wage at piece rates is applicable for people who get paid based on the amount of work they deliver. In 2018, employees must earn at least the minimum wage for every hour worked. If the person works 20 hours per week, the employer must pay him/her at least 20 times € 10.12. If working full-time, employers pay the corresponding hourly wage.
• If employees work extra hours that are additional work, the employer must pay the employees, so that on average they earn at least the minimum wage for those hours worked. Extra hours mean that the person works more hours than is stated in the contract. Full working week – minimum wage per hour: 36 hours € 10.12, 38 hours € 9.59 and 40 hours € 9.11. For example, if the employee works 40 hours per week and 5 hours extra, the employee must receive at least an average of 45 times the minimum wage per hour over that week. In this case 45 times € 9.11.
•Minimum wage for an agreement against remuneration. This applies to all people who do not have an employment contract but who work on the basis of an agreement on remuneration. From 2018 they must earn at least the minimum wage.
3. Holiday allowance overtime. Since 2018 onwards, an employee will be entitled to a minimum wage and to a vacation allowance over his/her overtime wage. It means that holiday allowance must also be paid on overtime worked before 1 January 2018. If you do not want to pay a vacation allowance overtime over 1 January 2018, you must pay the holiday allowance before 1 January 2018 or allow the employees to record these hours.
4. Transition fee. The maximum will be € 79,000 or a gross annual salary (if this is higher).
5. Pension age. It will rise to up to 66, and in 2021 to 67.
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