Dutch cabinet to increase the minimum wage in 2023 – DutchReview



The Dutch cabinet plans on raising the minimum wage already starting next year, reports the NOS.

Originally, the plan to increase the minimum wage by 7.5% was to occur between 2024 and 2025, as stated in the coalition agreement.

READ MORE | From minimum wage to childcare: a roundup of Rutte IV’s proposal

Thankfully, the Dutch cabinet changed this because they want to increase the purchasing power of those earning a minimum wage salary at a quicker pace, due to recent high inflation.

What does this change imply?

In 2023, the Dutch cabinet will increase the minimum wage via a three-step process, sticking with the original decision to increase it by 7.5%.

For example, the minimum wage for those 21 and older working full-time is now €1725 per month. But, this will rise to approximately €1854 after the increase. 🤓

READ MORE | Salaries in the Netherlands: the ultimate guide to Dutch wages

30% ex-pat rule

Currently, foreign residents working in the Netherlands pay no tax on a maximum of 30% of their income.

According to RTL Nieuws, this rule will now only apply to incomes reaching a maximum of €216,000 — a.k.a de Balkenendenorm (a rule that government workers in the Netherlands may not earn more than 130% of a minister’s salary).

What do you think of the Dutch cabinet’s decision? Tell us in the comments below!


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