Minimum wage increases as of July 1, 2024

On July 1, the minimum wage in the Netherlands will increase again. This change has direct implications for all employers. What exactly is happening with the increase, and how can you best prepare as an employer? Read this blog for all the answers and the secret to not having to do anything yourself!

Everything about the Minimum Wage

What is the minimum wage?

The minimum wage is the legally required minimum amount that you, as an employer, must pay your employees. To account for inflation and other economic influences, this amount is usually adjusted twice a year.

Why is the minimum wage increasing?

The minimum wage is being raised to protect and improve employees' purchasing power. The increase also helps reduce economic inequality and ensures a livable income.

How much will the minimum wage increase on July 1?

On July 1, 2024, the minimum wage will be indexed by 3.1 percent. This will increase the minimum wage from €13.27 to €13.68 per hour. This amount applies to adults aged 21 and older. You can find more information about the minimum wage per hour by age on Rijksoverheid.nl.

No Additional Increase

In October, the House of Representatives passed an amendment to increase the statutory minimum wage by an additional 1.2 percent. This required emergency legislation. The Senate expressed concerns about the high cost increase for employers, particularly because the minimum wage has already risen significantly in recent years. Additionally, the extra increase would cost the government a lot of money since the AOW (state pension) would also rise. As a result, the senators voted against this emergency law, and the extra increase will not go through.

How does this impact you as an employer?

Higher labor costs

As the minimum wage increases, so do labor costs. This has a significant impact, especially if your organization employs many workers earning the minimum wage.

Adjustment of employment contracts

All relevant employment contracts must be reviewed and adjusted to meet the new minimum wage requirements. Depending on the number of employees, this can take a lot of administrative time.

Budgeting and cost management

If the increase causes financial strain, consider revising budgets and implementing measures to save costs. This will help mitigate the impact of higher labor costs as much as possible.

How can you prepare?

Communication with employees

Communicate openly and transparently with your employees in advance. Make sure they understand what is changing and what the increase means for them.

Administrative adjustments

Ensure that your payroll administration is up-to-date so that all employees are paid correctly according to the new minimum wage. This may mean updating your payroll software or providing additional training to administrative staff.

Financial planning

Thorough financial planning helps minimize the impact of increased labor costs. Analyze different scenarios and identify possible cost savings.

Rather spend your valuable time differently?

You can! By hiring temporary workers through FlexWerk, we take care of all the administrative hassle for you. This allows you to focus on the core activities of your organization. Sounds good, right? Plus, you enjoy many more benefits:

• We recruit and select the best candidates for your vacancies.
• You quickly have flexible and motivated employees.
• Easily scale up and down during busy and quiet periods.
• Flex worker sick? We bear the risk and provide a replacement.
• Contracts, personnel administration, and payroll administration are all handled by us.