Written by
Sara
Category
Statutory Minimum Wage for 2024
The statutory minimum wage is a crucial part of Dutch employment law and has a direct impact on many employees in the Netherlands. In 2024 several major changes were made to the minimum wage, affecting the income of countless Dutch employees. In this article we take a closer look at these changes and what they mean for both employees and employers.
1. Increase in the minimum hourly wage
From 1 January 2024, the statutory minimum hourly wage for employees aged 21 and over was set at €13.27. The aim of this change is to give employees a fairer income that better matches the rising cost of living.
A full-time employee working 40 hours per week receiving a fixed monthly amount comes to €2,317.83 gross.
2. Additional increase on 1 July 2024
In addition to the initial increase on 1 January, the statutory minimum wage rose again on 1 July 2024, by 1.2%. This additional increase was announced with the aim of strengthening the purchasing power of employees and providing them with a fairer income.
What do these changes mean?
These changes to the statutory minimum wage are of great importance for both employees and employers. For employees they mean an improvement in their financial situation, enabling them to better meet their basic needs and lead a decent life. For employers they may lead to an increase in payroll costs, but can also contribute to a more motivated and productive workforce.
Minimum wage per hour by age
15 years: €3.98
16 years: €4.58
17 years: €5.24
18 years: €6.64
19 years: €7.96
20 years: €10.62
21 years and over: €13.27
Calculation: total hours worked in the month x minimum wage = gross monthly amount
Calculation example for fixed monthly amounts
If there is no variation in hours, for example you always work 40 hours per week, this may be more convenient for both parties.
In 2024 there are 262 working days and you work 8 hours per day.
2,096 hours in 2024 / 12 = 174.6666666667 (174 2/3) x minimum wage = €2,317.83 gross monthly amount
Calculation: (number of working hours in 1 year or 52 weeks / 12 months) x minimum wage = gross monthly amount
Exception to the minimum wage
If the company is bound by a collective labour agreement (cao), you follow the salary scales stated in the cao.
In addition, an employer without a cao can also offer a higher salary than the statutory minimum wage.
Conclusion
The statutory minimum wage for 2024 underwent significant changes, with an increase in the minimum hourly wage from 1 January and an additional increase of 1.2% from 1 July. These adjustments are intended to strengthen the purchasing power of employees and provide them with a fairer income that better matches the rising cost of living. As an employee it is important to be aware of these changes and to benefit from them, while employers need to prepare for their potential impact on business costs.