5 september 2022
The ins and outs of the Dutch minimum wage – Netherlands
The Dutch government has recently decided to increase the minimum wage in the Netherlands. This means that, from 1 January 2023, employees who are 21 years of age or older and have full employment will be entitled to a gross minimum wage of €1,934.40 per month.
However, it is important to note that the minimum wage is lower if you are under 21 years of age. Additionally, the government adjusts the amount of the minimum wage twice a year – on 1 January and 1 July – in line with changes in average collectively agreed wages in the Netherlands.
So, what does this all mean for employees and employers in the Netherlands? In this article, we take a closer look at the ins and outs of the Dutch minimum wage.
What is the minimum wage in the Netherlands?
As we mentioned above, the minimum wage in the Netherlands is €1,934.40 per month for employees who are 21 years of age or older and have full employment. This amount is gross – meaning that it includes any tax deductions that may be applicable.
If you are under 21 years of age, the minimum wage is lower. The Dutch government has a specific minimum wage overview that you can use to calculate the minimum wage that applies to you.
Who is entitled to the minimum wage?
Generally speaking, all employees who are 21 years of age or older and have full employment are entitled to the minimum wage in the Netherlands. This includes employees who work part-time, as well as those on temporary contracts.
There are a few exceptions to this rule. For example, if you are an employee who works for a family member, you may not be entitled to the minimum wage.
What are the consequences of not paying the minimum wage?
If an employer does not pay their employees the minimum wage, they may be subject to a fine. Additionally, the employee may file a complaint with the Dutch Labour Inspectorate (Arbeidsinspectie).
If you believe that you are not being paid the minimum wage, we recommend contacting the Dutch Labour Inspectorate for advice.
Salary Calculator for businesses
The minimum wage is an important topic for both employees and employers in the Netherlands. By familiarising yourself with the ins and outs of the minimum wage, you can ensure that you are getting the pay that you are entitled to (or paying the employees what they are entitled to). Use our Employee Cost Calculator to get an estimated cost of hiring employees in the Netherlands.
Expanding or Setting up a company in the Netherlands? We can help!
If you are looking to expand your company to the Netherlands or start up a company in the Netherlands, Employer of Record the Netherlands can help you with all the necessary payroll and HR requirements. We can help you navigate the Dutch labour market and ensure that you are compliant with all local laws and regulations. You can focus on the content of the job, and we will take care of the rest. Contact us today to learn more about how we can help you.