This is what you need to know about the increase in the minimum hourly wage
The minimum hourly wage will increase by 3,1%, but what exactly does this mean? We explain it for you below. We will tell you why the minimum hourly wage is being increased, why a bill for an additional increase was rejected, what the future of the minimum hourly wage looks like and what exactly this means for you as an employee.
Why is the minimum wage increasing?
As of July 1, the minimum hourly wage will increase from €13,27 to €13,68. That initially sounds like positive news, but is that true? This increase in the minimum hourly wage concerns an indexation, not an additional increase. The minimum hourly wage is indexed every six months, which means that the minimum hourly wage increases with the collective labor agreement wages. In this case it concerns an indexation of 3,1%. That in itself is of course a bonus. It is good to know that the House of Representatives' bill to introduce an additional increase of 2,1% has been rejected by the Senate.
Why is it limited to indexation?
Although the minimum hourly wage is increasing due to the six-monthly indexation, there is no additional increase. The reason that there was no majority in the Senate for the additional increase of 2,1% is that this would entail too large a cost increase for employers. In recent years, the minimum hourly wage has been increased several times, as have collective labor agreement wages. Partly as a result, wage costs for employers increased by about 10%. An increase in the minimum hourly wage would also entail additional costs for the government itself, as the state pension would also increase. In short, according to the opponents of this bill, the increase in the minimum hourly wage is disproportionate and does not achieve the goal it should achieve.
The minimum hourly wage and social security
The fact that there is no additional increase in the minimum hourly wage is not necessarily disadvantageous for employees. Supporters of the bill argue that work must pay, but it remains to be seen whether an increase will actually lead to an improvement in social security. In other words, employees would benefit more if the government focused on social security and reducing labor costs. According to opponents of the bill, these goals will not be achieved by increasing the minimum hourly wage and it will be particularly detrimental to employers.
The future of the minimum hourly wage
Since a new cabinet is coming, many things can change regarding the minimum hourly wage. However, it is not entirely clear what exactly the new government's policy will look like. There is a good chance that the new cabinet will consist of both supporters and opponents of the bill. The VVD and the BBB voted against the increase in the minimum hourly wage and the PVV voted in favor of the bill. It is important not to make yourself dependent on the minimum hourly wage. Make sure that you give 100% effort no matter what and that you enjoy your work, and the rest will take care of itself.
