[Netherlands] Senate votes to replace monthly minimum wage with hourly wage

Earlier this month the Dutch Senate passed the introduction of an hourly, rather than monthly, minimum wage, EUobserver reports.

It is hoped that the move might offer respite to some workers after a year of inflation rates that have reached over 17 per cent in the Netherlands.

The measure will particularly benefit workers with a 40-hour working week who were previously paid the same at the end of the month as those who worked 36 hours a week. Both reportedly counted as full-time employment, the criterium for the minimum wage.

The Netherlands Trade Union Confederation FNV told EUobserver that the change will mean a pay rise of up to 11 per cent for some groups of workers. The exact raise will depend on the sector.

FNV reportedly welcomes the step to introduce an hourly minimum wage but it is calling for the hourly minimum wage to be set at 14 euros per hour.

The Netherlands already has one of the highest minimum wages among the 22 EU member states with similar schemes.

The Netherlands is one of the 22 EU member states with minimum wage laws that benefit the poorest workers. The remaining five determine the minimum wage through collective wage bargaining.

All of these countries except Greece have raised the minimum wage in 2023. However, only five of these increases have offset inflation; in Latvia, Romania, Germany, Slovenia and Poland.

In the Netherlands, the increase was just over ten percentage points in January. The national union said it was an insufficient increase.

"Minimum wages will remain well below the level demanded by FNV, and below the criterium set by the EU for an adequate minimum wage," Dutch workers' representatives told EUobserver.

In October 2022, the EU adopted a binding directive to ensure that all member states have adequate minimum wages. It sets the level at 60 per cent of the gross median wage. The Netherlands is slightly below this level.

Setting minimum wages is reportedly a matter for the member states and it is up to them to set specific appropriate minimum levels that comply with the agreed framework by November 15, 2024. Some member states set minimum wages on an hourly basis, others monthly.

The directive also provides for collective bargaining coverage to reach 80 per cent of workers because not all member states have minimum wage laws.

Source: EUobserver

(Quotes via original reporting)

Earlier this month the Dutch Senate passed the introduction of an hourly, rather than monthly, minimum wage, EUobserver reports.

It is hoped that the move might offer respite to some workers after a year of inflation rates that have reached over 17 per cent in the Netherlands.

The measure will particularly benefit workers with a 40-hour working week who were previously paid the same at the end of the month as those who worked 36 hours a week. Both reportedly counted as full-time employment, the criterium for the minimum wage.

The Netherlands Trade Union Confederation FNV told EUobserver that the change will mean a pay rise of up to 11 per cent for some groups of workers. The exact raise will depend on the sector.

FNV reportedly welcomes the step to introduce an hourly minimum wage but it is calling for the hourly minimum wage to be set at 14 euros per hour.

The Netherlands already has one of the highest minimum wages among the 22 EU member states with similar schemes.

The Netherlands is one of the 22 EU member states with minimum wage laws that benefit the poorest workers. The remaining five determine the minimum wage through collective wage bargaining.

All of these countries except Greece have raised the minimum wage in 2023. However, only five of these increases have offset inflation; in Latvia, Romania, Germany, Slovenia and Poland.

In the Netherlands, the increase was just over ten percentage points in January. The national union said it was an insufficient increase.

"Minimum wages will remain well below the level demanded by FNV, and below the criterium set by the EU for an adequate minimum wage," Dutch workers' representatives told EUobserver.

In October 2022, the EU adopted a binding directive to ensure that all member states have adequate minimum wages. It sets the level at 60 per cent of the gross median wage. The Netherlands is slightly below this level.

Setting minimum wages is reportedly a matter for the member states and it is up to them to set specific appropriate minimum levels that comply with the agreed framework by November 15, 2024. Some member states set minimum wages on an hourly basis, others monthly.

The directive also provides for collective bargaining coverage to reach 80 per cent of workers because not all member states have minimum wage laws.

Source: EUobserver

(Quotes via original reporting)