Statutory minimum wage in the Netherlands as of 1st July 2022

minimum wage in the netherlands
As of 1 July 2022, the monthly minimum wage will increase from € 1,725.00 to € 1,756.20 for all workers over the age of 21. Workers between the ages of 15 and 21 are entitled to the minimum youth wage, which provides for a gradual increase proportional to the age attained.

Workers over the age of 21 are entitled to receive the national minimum wage. The Dutch government adjusts the minimum wage twice a year – on 1st January and 1st July – in line with the development of collectively agreed average wages.

Table of Contents

  1. The New Amounts for the Dutch Minimum Wage
  2. The Beneficiaries of the Minimum Wage
  3. The components of the minimum wage
  4. Penalties for non-compliance with minimum levels
  5. Regulatory framework
  6. How A&P can support you
  7. Book a call
  8. Get a quotation

 

1. The new amounts for the Dutch minimum wage

The law does not set a minimum hourly wage because the number of hours in a working week can vary from one company to another. Therefore, a monthly minimum wage is established for all full-time workers: as of 1 July 2022, each worker over the age of 21 must receive a gross monthly minimum wage of € 1.756,20. Considering a working week of 40 hours, the minimum hourly wage is thus € 10,14.

For workers up to the age of 21, the minimum youth rate applies, the monthly amount of which varies from a minimum of € 526,85 (employees aged 15 years) up to € 1.404,95 (workers aged 20 years).

2. The Beneficiaries of the Minimum Wage

All workers from the age of 15 are entitled to the national minimum wage (until the age of 21 the minimum youth wage applies).

The minimum wage also applies to flexible workers, such as on-call and work-from-home employees. Project collaborators are also entitled to the minimum wage, as well as part-time workers.

However, the measure does not apply to self-employed workers, as they have a different position on the labour market.

3. Components of the minimum wage in the Netherlands

The minimum wage consists of the basic wage and a number of allowances, e.g. for shift work and irregular hours. Some income components, such as overtime pay, are not included in the calculation of the minimum wage.

The minimum wage is calculated on the basis of gross pay consisting of:

  • the basic pay agreed in the contract;
  • performance-related payments and allowances for shift work, irregular hours, etc;
  • fixed weekly or monthly payments in relation to the turnover produced;
  • work-related payments from third parties, e.g. tips or payments agreed between the employee and the employer;

 

The total of these amounts may therefore not be less than the minimum wage set by law. For the purpose of calculating the minimum wage, the following amounts are not to be taken into account:

  • overtime;
  • leave allowances;
  • profit shares;
  • special payments (e.g. fringe payments received for achieving sales targets);
  • future payments received under certain conditions (e.g. pension and savings plans to which the employer contributes);
  • expense allowances;
  • year-end allowances.

 

4. Sanctions for non-compliance with minimum levels

The Dutch Labour Authority can request an employer’s payroll records if it suspects that the employer is violating minimum wage regulations.

If the employer’s payroll records do not comply and/or the employees’ wages cannot be checked, the employer can be fined up to €12.000.

If the authorities find that an employee is underpaid, the employer is obliged to pay the wages due within four weeks. If this does not happen, the labour authority may impose a fine of €500,00 per day per employee up to a maximum of €40.000 per worker.

In addition, employers who do not pay their employees properly can be fined up to €10.000 per employee.

In case of repeated offences within a period of 5 years related to the payment of wages, the penalties can be doubled or tripled. The company also risks being closed for a period of up to 3 months.

6. How A&P can help you

A&P consultants assist companies that send employees to the Netherlands and other EU countries. The services offered also include salary adjustment to the minimum levels established in the host country. The use of the A&P portal allows to manage assignments quickly and efficiently and to check the salary alignment of posted workers.

More than

0

years of experience

Our Teams of Experts have extensive experience in posting workers worldwide, inbound and outbound immigration, tax services in Italy and abroad.

Trusted by

0

clients in 2021

Book a call with our Experts

Choose the date and time that best suit you to plan a call with our Experts.

Request a quotation with the form below