Working in the Netherlands - Remuneration

The employer and employee usually agree on a gross wage. The net sum received by the employee depends, among other things, on deductions from the gross wage (social security contributions and tax). The net wage is the amount ultimately transferred to the bank or giro account.

Minimum wage Employers must pay their employees at least a minimum salary, i.e. the statutory minimum wage. The amount of this minimum wage depends on age, working time and the number of working hours. Employees in the 15-22 age group are entitled to part of the minimum wage, i.e. the minimum youth wage.

As a rule, the minimum wage is adjusted twice a year (1 January and 1 July) in line with changes in collective agreement wages.

As at 1 January 2005, the minimum (youth) wage was as follows (gross per month, per week and per day, in euro, excluding holiday allowance):

Percentage minimum wage per month per week per day:

Amounts in euro

• From 23 years 100% 1,264.80 291.90 58.38
• From 22 years 85% 1,075.10 248.10 49.62
• From 21 years 72.5% 917.00 211.60 42.32
• From 20 years 61.5% 777.85 179.50 35.90
• From 19 years 52.5% 664.00 153.25 30.65
• From 18 years 45.5% 575.50 132.80 26.56
• From 17 years 39.5% 499.60 115.30 23.06
• From 16 years 34.5% 436.35 110.70 20.14
• From 15 years 30% 379.45 87.55 17.51
  

Unlike gross amounts, net wages are not determined by law. They may differ from business to business or industry to industry. This is because of differences in deductions from pay in connection with social security contributions. The amounts below exclude pension and early retirement contributions, nor do they include nominal contributions to compulsory health insurance. The amounts are therefore simply a general indication. The amounts are rounded off to full euros.

Net minimum wages in euro as at 1 January 2005:

Age per month per week

• 23 years and older 1,045 241
• 22 years 902 208
• 21 years 783 181
• 20 years 678 156
• 19 years 592 137
• 18 years 526 121
• 17 years 478 110
• 16 years 430 99
• 15 years 374 86

The above amounts apply to employees without children. They do not include any tax credit which partners may claim.

The statutory minimum holiday allowance is 8 percent of the gross wage.

Source: European Union
© European Communities, 1995-2006
Reproduction is authorised.