ING: Dutch employers should raise salaries by average of 5 percent
Research conducted by ING has revealed that employers in the Netherlands can afford to increase workers’ salaries by an average of 5 percent over the course of 2022 and 2023.
Companies in the Netherlands can afford to raise salaries
According to researchers over at ING, in spite of the relatively uncertain economic outlook, companies in the Netherlands continue to benefit from strong economic growth after the coronavirus pandemic. Combine this with the ongoing labour shortage and employers’ growing need for staff, and the Dutch bank calculates that businesses should be able to increase the salaries of their employees by an average of 5 percent.
“Wage increases only happen if companies are doing well economically and more profits are made. That is now the case in the Netherlands,” senior economist Marcel Klok told NU. He went on to explain that while it is unfeasible to expect salaries to increase in line with inflation, an increase of 5 percent is “realistic, because it is still economically justifiable for companies. Many companies still make enough profit to be able to pay the staff that much extra."
Some workers and sectors will benefit more from economic growth
2022 has seen salaries agreed upon in collective labour agreements rise by an average of over 3 percent - an unprecedented rate in the Netherlands. However, Klok points out that this overall increase of 5 percent shouldn’t only affect workers covered by collective labour agreements, but that employees should also see their wages increase through a combination of additional rewards, bonuses, and promotions.
He does, however, emphasise that huge differences should be expected between sectors; while the catering industry, for example, continues to struggle to bounce back post-pandemic, those with jobs in the IT sector should see their incomes increase by more than 5 percent. Self-employed people should also be able to benefit more easily, as they have more control over their rates and incomes.