In the third quarter of 2024, wages negotiated as part of collective labour agreements increased by 6,8 percent compared to a year earlier - equaling the highest wage increase in over 40 years. Statistics Netherlands (CBS) has reported that this is the main reason that workers in the Netherlands are seeing a rise in their disposable income.
In the past three months, the private sector had the highest increase in Dutch wages of the three main sectors at 7,3 percent, while the sector including subsidised institutions - mainly consisting of healthcare - was not far behind with a 7,1 percent increase.
In the government sector, collective agreement wages increased by 5,4 percent. During the same period last year, the government and subsidised sectors were the other way around, with the government seeing the highest increase.
When looking at the different industries, salaries of employees at housing associations increased the most at 12,4 percent and those in the hospitality industry rose by 10,8 percent. On the other side of the coin, wages in education only went up by 2,1 percent. “This is mainly because wages in the two largest education collective labour agreements (primary and secondary education) last increased in the third quarter of 2023,” CBS reported.
The wage increases from collective bargaining agreements are the reason why many residents have more money to spend after taxes. In the second quarter, the disposable income of Dutch households increased by 1,6 percent.
Mortgage debt in the country also increased by 9,2 billion euros as the price of homes became more expensive. Despite higher housing prices, more houses were purchased, which can be attributed partly to the wage increases.
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