Disposable income in the Netherlands rises thanks to higher salaries

According to the most recent figures from Statistics Netherlands (CBS), the disposable income of households in the Netherlands rose by 1,7 percent between the start of last year and the first quarter of 2023, largely due to higher salaries and longer working hours. 

CBS: Dutch households slightly better off in 2023

Since the end of the coronavirus pandemic, those living and working in the Netherlands have been unable to ignore the rising cost of living. However, the most recent figures published by CBS reveal that, even though prices are rising, households were actually slightly better off during the first quarter of 2023 compared to the same period last year.

Figures show that, between January and March 2023, the real disposable income (i.e post-tax income, adjusted for inflation) was 1,7 percent higher than a year earlier. "These are pretty good numbers, if you consider how high inflation has been," ING economist Marieke Blom told RTL Nieuws.

Salaries and working hours rise in the Netherlands

CBS explains that this increase is largely due to the fact that many across the Netherlands have seen their salaries rise over the past year. Not only did salaries agreed upon in collective labour agreements (cao) experience record growth in 2022, but many workers also chose to increase their hours, thereby also raising their incomes. 

“The total remuneration of employees grew by 7,7 percent,” CBS states, while “the number of hours worked grew by 2,2 percent.” Those receiving benefits or allowances from the Dutch government also saw their incomes rise, as a result of a higher national minimum wage.

Thumb: pixinoo via Shutterstock.com.