Rising wages are no match for soaring inflation in the Netherlands

Life in the Netherlands is getting more expensive. While wages are slightly increasing, they cannot keep up with the rising high inflation.

From expensive groceries to high energy bills, many residents are losing purchasing power. In August, inflation reached a record high of 12% in the Netherlands.

The main cause for this increase can find its root in the higher energy bills, and Russia’s chokehold on the gas supply in the EU.

As a result, other things, such as food and clothing, have become more expensive nowadays.

READ MORE | Unbe-live-able: The Netherlands faces its highest rent increase ever since 2014

Rising wages can’t keep up with the pace

Last month, the average increase in wages was about 4%, according to AWVN, the largest employer’s association in the Netherland.

The good news is that wages will also be on the increase in the coming months, as per NU.nl.

The bad news is that the increase will most likely not be high enough to correct the effect of inflation on the economy. “These companies cannot afford that.” says an AWVN spokesperson.

READ MORE | Dutch gas prices break yet another record, cabinet calls for higher wages

“There is no question of a wage wave. […] There are many companies, especially SMEs, that cannot correct inflation through a significant wage increase. These companies cannot afford that.”

With high inflation comes high demand

Surprisingly, it may be a good thing for inflation to remain high. Let’s not forget that the Netherlands is also dealing with a huge staff shortage.

If the inflation rate remains the same, wages in many sectors will increase much faster in order to attract workers to low-staffed positions.

“The vast majority of companies make significant profits, and it is time for employees to take advantage of this. They are supplying purchasing power now that groceries and energy are becoming more expensive. It is time for considerable compensation,” says a spokesperson to NU.nl.

Has the rising inflation affected you in any way? Tell us about your experiences 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).


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