In January, average wage increases in the Netherlands remained high and this is expected to continue throughout the year. Due to high inflation, worker shortages and trade unions' salary demands, Dutch workers can count on substantial wage increases in 2025.

High inflation to result in higher Dutch wages

According to figures by the employers’ association AWVN, last month saw wages increase by an average of 4,5 percent. The conclusion of seven collective labour agreements for 20.000 workers in the Netherlands contributed to this. Sectors with the fastest growing salaries were hospitality, construction, wholesale, business services, education and transport services, NU.nl reported. 

RaboResearch economists expect wages from collective labour agreements to rise by 5,9 percent in 2025 and by 4,8 percent next year. "Given that inflation is also expected to remain relatively high, we assume that employees will only have a structurally higher real wage at the end of 2025," they wrote. 

Salaries in the Netherlands rising less rapidly

While salaries have seen a steady rise mainly due to the worker shortage and collective labour agreements, this has slowed a bit in recent months. With companies experiencing high costs and growing concerns about the economic situation, employers are becoming more reserved with wage increases, especially as most workers have already been compensated for the loss of purchasing power.

"We see a certain trend that wage increases have been decreasing in recent months, but are still around 4 percent," said an AWVN spokesperson. "That is still higher than inflation. As a result, companies are faced with higher costs and that is detrimental to their competitive position. We need to look at the wage capacity for each company and sector." The organisation also acknowledges that the tight labour market and increasing excise duties are fuelling inflation, but states that “wage increases also play an important role”.

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