According to calculations by payroll service provider ADP, people with jobs in the Netherlands will see their salaries increase by an average of 91 euros per month from January as a result of changes the government has made to the Dutch tax system. 

Workers in the Netherlands benefiting from new tax rules

On Prinsjesdag in September 2022, with the aim of boosting the purchasing power of citizens and residents, the Dutch government announced a series of changes to the minimum wage and taxation in the Netherlands. From January, workers earning salaries in the lowest tax bracket (up to 73.071 euros a year) will see their income tax rate fall to 36,93 percent. 

Meanwhile, the labour tax credit will also increase in the new year, as will the tax-free travel allowance and the home working allowance. The minimum wage is also set to rise, resulting in knock-on effects on Dutch benefits and allowances. 

Dutch pay slips to increase by 91 euros a month from January

As a result of these changes, ADP calculates that workers earning a gross salary of 3.086 euros a month will see their average monthly earnings rise by 91 euros in the new year. Meanwhile, those earning minimum wage will see their income rise by 10,15 percent - or around 200 euros a month.

While ADP’s Dik van Leeuwerden did say this was good news for many workers, he also pointed out that “rising salaries do not immediately solve all the financial concerns” for many people in the Netherlands. 

Martijn Brand, Senior Vice President Central Europe at ADP, suggested that companies do more to protect and support the physical, mental, and financial health of their employees. “The current inflation rate and concerns about high prices for energy, among other things, have a significant impact on the mental health of both young and older employees,” he emphasised.