Editor in chief at IamExpat Media
Workers in the Netherlands are set to have more money in their pockets from next year, thanks to changes to Dutch taxes and other premiums, according to new research by the payroll company ADP.
Take-home salaries in the Netherlands are set to rise in 2024, ADP reports, largely due to higher tax credits. According to NOS, someone on a gross monthly salary of 3.400 euros will have about 80 euros extra per month in their bank account, after higher income-related tax reductions come into effect in the new year.
The biggest increase will be felt by those earning minimum wage and working full-time hours - these workers will take home up to 267 euros extra per month. This is mainly due to a change to the structuring of the minimum wage in the Netherlands, which will come into effect next year and see people put on an hourly minimum wage only, rather than a monthly one.
However, ADP noted that the higher earnings won’t definitely translate into better purchasing power for employees, since inflation is still high, pushing up the cost of food, energy and health insurance. The payroll company said that the higher take-home pay won’t necessarily offset these higher costs.
The ADP calculations do not include premiums on pensions or top-up health insurance policies.