Netherlands: minimum salary to be raised by 10% in 2023

On 20 September the Dutch government unveiled a €17 billion flagship plan to fight inflation and soaring energy prices. In January 2023, the minimum salary will be increased by 10% as compared to 2022, boosting the monthly level to €1,932 and making this the second highest in the EU behind Luxembourg (c.f. article No. 13080). The previous increase dates back just a few months to July 2022, but was only 1.8% (c.f. article No. 13124). According to Statistics Netherlands (the national statistical office), that national inflation rate reached 12% in August and over 2022 purchasing power has fallen by almost 7%. To address the situation, the budget, if passed, will also include an increase in tax credits for wage earners, a cut in the tax rate for earners in the lowest income tax bracket, and higher housing benefits and family allowances. These measures will be financed by the introduction of a tax on energy company ‘super profits’ earned in 2022. At the same time, the government has announced a plan to combat excessive recourse to flexible employment contracts such that on-call contracts will be abolished, except for students, measures will be implemented to combat ‘false’ self-employment, and certification will be mandatory for employment agencies.