Dutch Wage Growth and Inflation

This article was last updated on January 4, 2024

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Collective Wage Growth

Collectively agreed wages rose last year by the most in forty years. The increase was on average 6.1 percent, according to figures from the Central Bureau of Statistics (CBS). The year before that was still average 3.2 percent. However, just like the year before, this is not enough to compensate for inflation. Although final figures for December are not yet available, according to a provisional calculation, the Dutch were left with an average of 2.1 percent less. In the last quarter, employees did have more on balance, because inflation fell.

Government Workers

Government wages increased by 7.0 percent over 2023. There was also a large increase in government work in 2022, but this was mainly due to education. In 2023, that increase will be less attributable to one part of the government. Employees in the transport and storage sector saw their wages increase the most (8.4 percent). The CBS figures only concern people who fall within a collective labor agreement. That is about three quarters of all employees.

Projections for 2024

Wage increases have been agreed in hundreds of collective labor agreements for this year. Employers’ association AWVN thinks that the wage increase for 2024 will probably be slightly higher than the 6 percent of 2023. Employers are concerned about that. “Companies must be able to bear those burdens,” says spokesperson Jannes van der Velde. “They have to stay healthy, otherwise they cannot pay good salaries. And if more money goes into wages, there will be too little money left to invest.” Trade union FNV says that wages must rise further to restore the purchasing power of workers. The union has a wage demand of 5 to 14 percent for this year.