New minimum rates in the Netherlands (from July 1, 2023)
One's salary is one of, if not the most important, criteria when choosing a job offer. Minimum gross rates in the Netherlands are updated twice a year, on January 1 and July 1. The government of the Kingdom of the Netherlands adjusts the minimum wage in line with changes in average collective wages.
The increase in basic rates is agreed within the collective labor agreements (CAO). It's worth to note that the minimum wage is important not only for basic job positions, but also helps determine wages at higher levels of employment (according to the CAO classification). Therefore the amounts of the statutory minimum wage have a significant impact on the earnings of all employees, not only those whose remuneration is equal to the minimum wage.
Minimum wage - what to remember?
Statutory minimum wage amounts apply to a full working week. This is usually 36, 38 or 40 hours a week, depending on the sector and the collective bargaining agreements (CAO) that apply to the given sector. These arrangements determine, among other things, how long a normal working week lasts. For example, in the warehouse sector, a full working week is 40 hours and in greenhouse gardening it's 38 hours a week.
Age is also an important factor when it comes to calculating minimum salaries. Although many employers are no longer using "age salaries", different minimum rates apply to employees below and above 21.
It's also worth to remember that taxes and social security contributions are deducted from gross remuneration. The net salary that the employee receives depends on the amount of deductions. As these depend on many criteria, Dutch law doesn't specify a minimum net salary.
So what are the new minimum rates in the Netherlands from July 1?
It's also worth taking a look at these numbers after converting them into hourly rates. The table below presents the minimum wage values divided into working hours.