Increase in the minimum wage as of 01-07-2023

Every year in the Netherlands, the amounts for the statutory minimum wage are adjusted twice, in January and July. For the second adjustment, which takes effect on 1 July 2023, the new amounts have been announced. From then on, a full-time adult earns €1,995 per month, €460.40 per week, and €92.08 per day.

But what does this concretely mean per hour and for young people? That depends on age and the number of working hours per week. For example, a 21-year-old or older now earns at least €12.79 per hour with a full-time workweek of 36 hours. For younger workers under 21, the hourly wage is lower and varies depending on age and the number of working hours per week.

The increase of the minimum wage on 1 July 2023 represents a 3.13% improvement for employees compared with the minimum wage that had applied since 1 January 2023. Another important news item is that the government plans to introduce a minimum hourly wage on 1 January 2024. Currently, there is still a minimum monthly, weekly, and daily wage, which is subsequently converted into an hourly wage. However, implementing a minimum hourly wage could also lead to higher labor costs, which raises concerns.

For this reason, alongside the proposed law, a motion by Oomen-Ruijten was adopted. It asks the government to assess the economic situation of small entrepreneurs and to explore possibilities for relief from taxes and charges. It should also examine what potential room the UWV funds offer. In early February, many sector associations submitted a petition urging a reduction in employer costs and a phased introduction of the statutory minimum hourly wage. It remains to be seen what the ultimate impact of the minimum hourly wage will be on the labor market and the economy as a whole.