January 21, 2021

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“Many wages rise as the minimum wage rises” | Career

"Many wages rise as the minimum wage rises" | Career

Benefits such as the state pension and social security are linked to the minimum wage. A 10% increase would therefore cost the Dutch state EUR 6.3 billion a year. About half of this flows back into the state treasury.

Earlier this year, the CPB concluded that an increase in the minimum wage with a long-term relationship will result in a 0.5% loss of employment, representing a decrease of around 45,000 jobs.

An increase in the minimum wage without any benefits means entitlement to public finances of EUR 400 million and a decrease in employment of 0.1%.

Young people

In the Netherlands, around 440,000 people (5.5%) earn the minimum wage, particularly in the hotel and restaurant sectors and in retail. 140,000 of them are younger than 21 years. A full-time employee over the age of 21 is entitled to € 1,680 gross per month, but most workers with a minimum wage have (small) part-time employment.

People with a migrant background work relatively often for the minimum wage, especially Poles, Romanians and Bulgarians.