New Direction in 2024: Increased Minimum Wage and Uniform Hourly Rate

On January 1, 2024, the statutory minimum wage will increase by 3.75%. The statutory gross minimum hourly wage for employees aged 21 and older will then be €13.27 per hour. This is a regular adjustment; every six months, the minimum wage is updated to match collective labor agreement (CAO) rates. However, there's more to the story.

Starting on January 1, 2024, a new law for the minimum hourly wage will also be introduced. This means that there will be no legally prescribed minimum daily, weekly, or monthly wages. Instead, a single uniform minimum hourly wage will be in place, applicable to all employees in the Netherlands. This change will determine a minimum wage earner's monthly income based on the actual number of hours worked. This is a departure from the current situation where minimum wage earners who work 40 hours receive a lower hourly wage than those who work 36 hours. This disparity will come to an end. The introduction of the minimum hourly wage is the result of the initiative proposed by members of the Dutch Parliament, Kathmann and Maatoug.

Implementing the minimum hourly wage may require adjustments to salary administrations, employment contracts, and collective labor agreements. To assist employers, payroll administrators, and parties involved in CAOs with preparations for the introduction of the statutory minimum hourly wage, a knowledge document on the statutory minimum hourly wage for 2024 is available.