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Due to the exceptionally high inflation and its consequences for disposable income, the government has decided to raise the minimum wage in one go.

The government wants to make work more rewarding and is introducing an additional increase in the minimum wage for the first time since its introduction in 1969. As a result, the minimum wage will increase by 1% on 2023 January 10,15, contrary to the previous intention. The Council of Ministers has agreed to this on a proposal from Minister Van Gennip of Social Affairs and Employment.

Due to the special increase of the statutory minimum wage (WML) by 8,05%, the minimum wage (together with the regular half-yearly indexation, based on the contract wage increase) will be €1 gross per hour as of January 2023, 12,40 for a 36-year-old. hour working week. That is a total increase of 10,15%. Earlier this year, the cabinet had already decided to increase all benefits linked to the minimum wage, such as the AOW, social assistance and the Wajong Act. As a result, the minimum wage increase also has positive consequences for the income of benefit recipients and AOW pensioners.

Due to the exceptionally high inflation and its consequences on the disposable income of the Dutch, the cabinet decided on Budget Day to raise the minimum wage in one go. This is necessary to offer people with lower and middle incomes perspective and to make them more resilient to (possible) financial setbacks. The government expects that there will be a spill-over effect, so that employees with an income just above the minimum wage will also benefit from this.

Due to the special circumstances, the adjustment of the minimum wage can be arranged through a General Administrative Order (AMvB) instead of an amendment to the law. An Order in Council can be realized more quickly and also means that all benefits linked to the minimum wage, such as social assistance and the Wajong, increase automatically.

Statutory minimum hourly wage

The minimum wage is currently set on a monthly basis. Therefore, an employee who works 40 hours a week has a lower minimum hourly wage than someone who works 36 hours a week. To change this, the PvdA and GroenLinks previously submitted a private member's bill for a statutory minimum hourly wage. This proposal was embraced by the government in the coalition agreement and recently adopted in the House of Representatives. As a result, there will be a statutory minimum hourly wage from 1 January 2024. This means that the mini-wall wage is the same from then on, regardless of the length of the working week.

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The minimum wage is currently set on a monthly basis.
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