The minimum wage in the Netherlands is set to increase again in 2025. However, based on the tax plan drawn up by the Dutch government, part-time workers will see a much smaller increase than full-time employees.
Planned changes for incomes in the Netherlands
Since the beginning of 2024, a minimum hourly wage has been applied. On Prinsjesdag 2024, the government announced the budget for next year and with that the planned changes for incomes in the Netherlands.
Some of the plans included adding a new income tax bracket, making changes to tax credits - which are breaks for income tax - and increasing the hourly minimum wage. According to payroll service provider Visma Raet, these changes will not have a positive effect on the incomes of all workers in the Netherlands, as minimum wage earners who work part-time (32 hours per week) will only get 11,10 euros extra per month (0,59 percent increase), while full-time employees who work 36 hours per week will have 40,72 euros extra in their bank accounts every month (1,97 percent increase).
Dutch minimum wage sees lower increase for part-time workers
From January 1, 2025, the hourly minimum wage in the Netherlands is set to increase from 13,68 euros to 14,06 euros for workers aged 21 and over. Based on this, Visma Raet has calculated what workers will get out each month.
Full-time employees working between 36 and 40 hours per week will earn from 40,72 euros to 58,16 euros net extra per month - 1,97 to 2,64 percent more than in 2024. On the other hand, part-time workers with a contract for 32 hours will only receive 11,10 euros more in their bank accounts every month - just 0,59 percent more than this year.
“It is striking that full-timers see a much larger increase than part-timers,” a spokesperson from Visma Raet wrote in a news release. “This difference can be explained by the change in the general tax credit that was announced last Budget Day.” The general tax credit will drop next year, which means that people who earn smaller salaries will have to start paying tax and it will also be higher for lower tax incomes. Furthermore, according to Visma Raet, part-time minimum wage earners will actually pay more tax in 2025 than they currently do.
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