Dutch people face a 6.8% loss in purchasing power in light of soaring inflation figures — and unfortunately, the upcoming minimum wage increase won’t help much.
In fact, according to the NOS, upcoming Dutch wage increases in 2023 are not nearly enough to battle the huge loss of purchasing power for most Dutch people.
With inflation reaching record high levels this August, at a shocking 12%, the purchasing power of the people is plummeting downwards.
Wage increases barely scratch the surface
While the Dutch cabinet has offered a plan of attack against inflation, it appears that it will actually be about as effective as the brakes on your Oma’s 20-year-old bike.
The Dutch minimum wage is set to increase by 10% in 2023, but with inflation also expected to rise by a further 10% next year, this increase is nowhere near enough to cover the cost of rising prices in the Netherlands.
READ MORE | Feel it in your wallet yet? Inflation rises to new record in the Netherlands
Put simply: with inflation expected to rise by a further 10% next year, it doesn’t look like your 10% wage increase will leave you with much left at the end of the month. 😥
Not enough now, either
Current changes are also proving to offer little defence for people’s wallets. Wages increased by 1.8% in July 2022, bringing the monthly amount of pay for employees 21 years of age and older working full-time to €1,756.20 per month.
And surprise, surprise, this has had little effect on the loss of purchasing power amongst Dutch people.
Purchasing power on the decrease
So what does this all mean? An average loss of 6.8% is predicted for most Dutch families in 2023. Last year, purchasing power rose by just 0.3%, the lowest amount it has increased in recent years.
And, due to inflation rising dramatically high in the last quarter of 2022, the power of people’s wages went down by 3%.
READ MORE | The Dutch government plans to tackle the high living costs, here’s how it will impact you
And who will feel the effects of inflation the most? Those of us working minimum wage jobs or living on benefits, of course!
In total, this means that 30% of the population of the Netherlands will face a loss in purchasing power next year. Roll on 2023 (!) 🙃
Though it’s expected to have to tighten the wallets in times of financial trouble, Dutchies also face the realities of rising rent and housing costs — with house prices now twice as expensive as they were back in 2013, one wonders from where, exactly, this extra money is supposed to come from.
What do you think of rising inflation figures? Leave us a comment below!
Inflation is ALWAYS brought on by liberal/socialist policies, and until people stop voting for left wing political parties nothing meaningful is going to change. In the meanwhile spend your money wisely; don’t patronize WOKE companies!