New minimum wage system

In recent years, the Dutch minimum wage was a fixed monthly amount based on the number of hours worked, taking into account a collective labor agreement (CAO) if needed. For 2023, the minimum wage was €1,995 gross per month based on a full-time contract. Whether a ‘full-time contract’ according to a particular employee’s CAO involved 36, 38, or 40 hours per week made no difference. The minimum wage was always €1,995 per month and could only be lower if the employee worked less than full-time. 

Starting in January 2024, a new system was introduced. The statutory minimum wage is now calculated on an hourly basis rather than monthly. Consequently, a minimum hourly wage was established. As of January 1, this minimum wage was €13.27 gross (excluding 8% holiday allowance) and will increase by 3.09% to €13.68 in July 2024. This means that the minimum monthly wage will vary depending on the number of hours worked in a full-time schedule. Collective labor agreements with a higher number of hours will see a greater increase in the minimum wage. Below is an overview of the changes in the number of working hours and the corresponding minimum gross wages as of January 1 and July 1 of this year. 

If you have any questions or need assistance with adapting to the new minimum wage regulations, such as updating payroll systems or revising employment contracts, please contact our experts.