Dutch government to raise minimum wage and reform 30% ruling benefit
Sources in The Hague have reported to NOS and RTL Nieuws that the Dutch government is looking to raise the national minimum wage one year earlier than planned, with the first increase now projected to occur in 2023.
Dutch minimum wage to increase by 7,5 percent
Prime Minister Mark Rutte and his cabinet ministers had previously agreed to a two-step increase to the Dutch minimum wage, raising it by a total of 7,5 percent over the course of 2024 and 2025. However, following the Spring Memorandum discussions between the four ruling parties, reports have emerged that the plan will be adjusted slightly due to the Netherlands’ rising inflation rate and growing labour shortage.
New information has revealed that, instead of introducing the 7,5 percent increase in two phases in 2024 and 2025, it will now be done over three phases starting in 2023. The new plan is expected to be approved by the Council of Ministers on Friday.
Unclear whether pensions in the Netherlands will also benefit
The coalition agreement stated that the cabinet didn't plan to increase state pensions alongside the minimum wage - a decision that has faced significant criticism within parliament. Under the new plan, NOS reports that the first step will see pensions increase in line with the minimum wage. It’s unclear whether the same will be true for the second and third stages in 2024 and 2025.
The left-leaning parties in the House of Representatives (Tweede Kamer), GroenLinks and the Labour Party (PvdA), have asked the cabinet to increase the national minimum wage substantially, and it’s unclear whether the 7,5 percent increase will be deemed sufficient.
Dutch government to introduce cap for 30% ruling
For the past several weeks, members of the government have been discussing the 2022 Spring Memorandum (voorjaarsnota), which is to be presented to the Tweede Kamer at the beginning of June. While the Prime Minister has refused to confirm which policies will be featured in his cabinet’s budget plan, earlier reports have suggested that higher wealth and business taxes are likely.
It also appears that the government will amend the current 30% ruling policy for expats. Rumours that the policy would be scrapped completely have been circulating for weeks, but RTL Nieuws reports that tax benefit will only apply to expats who earn a maximum of 216.000 euros.