Inflation in the Netherlands was 10% last year, while wages increased by an average of 3.2%

January 9, 2023

According to the national statistics office CBS, wages increased by an average of 3.2% last year, with teachers receiving the largest raises (more than 5%). The data only reflect real salary increases, not the significant ones that were agreed upon in the last few months of the year and won’t take effect until later in 2023. The disparity between the average wage increase and the average inflation rate last year was over 10%, which was the largest since the CBS began recording annual salary increases in 1973. Salary increases will be significant this year, according to employers’ organization AWVN, which provides advice to businesses on pay talks, and several agreements struck in the latter months of 2022 were for increases of more than 6%.

However, 200,000 individuals whose new contracts were established before to a spike in inflation will have to make do with 2.5% this year. The minimum wage rates have increased by 10.4%, and the government has put out a number of measures to help mitigate the effects of rising inflation. Although the government’s plans to control energy prices would lessen the effects of increased fuel prices, the average Dutch household will still have roughly 4% less money to spend in 2023, according to a report released in December by the government’s macro-economic policy body CPB.

Although the government’s plans to control energy prices would lessen the effects of increased fuel prices, the average Dutch household will still have roughly 4% less money to spend in 2023, according to a report released in December by the government’s macro-economic policy body CPB. According to the CPB, low wage growth and high inflation are to blame for the fall in purchasing power. A centrally agreed pay and conditions agreement, or CAO, that was reached between companies and unions and that covers a set time period—typically one or two years—covers about eight out of ten workers.

Source: Dutchnews.nl
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