The cabinet decided to cater to the wishes of the Dutch, and raise the minimum wage by 10% in 2023. 💸
With the Dutch inflation rate breaking records left and right this year, the long-awaited plan to increase wages is coming much faster than anticipated.
Originally, the plan was to raise the minimum wage by 7.5% next year. However, the government agreed to increase this number in an effort to maintain the purchasing power of the Dutch.
Not fast enough for struggling households
The cabinet plans to raise the minimum wage through a three-step process of 2.5%. Sources say that more than €15 billion will be spent in order to execute this.
READ MORE | Dutch gas prices break yet another record, cabinet calls for higher wages
Since the minimum wage is connected to benefits, like social assistance and the state pension, those groups will benefit substantially from the wage boost, writes the NOS.
The only bad news? We’ll have to wait until 2023 for the plan to actually set sail. Many folks are concerned with near penniless wallets and households that are strapped for cash.
While several parties have been pushing for even more purchasing power repairs this year, it’s not enough for the government to offer additional support measures before 2023.
What about excise duties?
Excise duties on fuel and energy prices will continue to decrease while income tax will also be reduced for those with lower incomes.
READ MORE | Inflation in the Netherlands hits low-income groups the hardest
In contrast, the child budget, which goes to low-income earners, will experience a sharp increase — and other allowances, like rent and healthcare, will follow.
By doing so, the cabinet hopes to support not only low-income earners but also middle-income households too.
What do you think about the 10% minimum wage increase? Tell us in the comments below! 👇
