Not a moment too soon: Dutch cabinet to increase the minimum wage in 2023

The Dutch cabinet plans on raising the minimum wage already starting next year, reports the NOS.

Originally, the plan to increase the minimum wage by 7.5% was to occur between 2024 and 2025, as stated in the coalition agreement.

READ MORE | From minimum wage to childcare: a roundup of Rutte IV’s proposal

Thankfully, the Dutch cabinet changed this because they want to increase the purchasing power of those earning a minimum wage salary at a quicker pace, due to recent high inflation.

What does this change imply?

In 2023, the Dutch cabinet will increase the minimum wage via a three-step process, sticking with the original decision to increase it by 7.5%.

For example, the minimum wage for those 21 and older working full-time is now €1725 per month. But, this will rise to approximately €1854 after the increase. 🤓

READ MORE | Salaries in the Netherlands: the ultimate guide to Dutch wages

30% ex-pat rule

Currently, foreign residents working in the Netherlands pay no tax on a maximum of 30% of their income.

According to RTL Nieuws, this rule will now only apply to incomes reaching a maximum of €216,000 — a.k.a de Balkenendenorm (a rule that government workers in the Netherlands may not earn more than 130% of a minister’s salary).

What do you think of the Dutch cabinet’s decision? Tell us in the comments below!

Feature Image:Depositphotos
Lea Shamaa 🇺🇸🇱🇧
Lea Shamaa 🇺🇸🇱🇧
Lea has a passion for writing and sharing new ideas with the world. She enjoys film photography, Wes Anderson movies, fictional books and jazz music. She came to the Netherlands in 2019 for her media studies and has fallen in love with the country and its culture ever since. She loves to ride her bicycle in the city but also feels the need to overtake everyone on the bike lane (she's working on it).

2 COMMENTS

  1. “a rule that government workers in the Netherlands may not earn more than 130% of a minister’s salary”- this is wrong on so many levels. What if the government worker is actually a cybersecurity engineer who could earn many times in the private sector?

  2. The only truly fair minimum wage is no minimum wage at all. Forcing employers and workers to accept a government dictated wage rather than what they would agree upon themselves is yet another example of socialist/fascists trying to run every aspect of peoples lives. You cannot have a minimum wage and still believe in freedom.

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