Wage Growth Slows in Netherlands, Though Still Outpaces Inflation
THE HAGUE – The rate of increase in collectively agreed wages across the Netherlands is showing signs of slowing, according to newly released data from Statistics Netherlands. While wages continue to rise, the pace has cooled compared to previous periods, presenting a complex economic picture amidst ongoing inflation concerns.
Three-quarters of Dutch employees are covered by collective labor agreements. In the latest quarter, these wages increased by 1.6 percent when adjusted for inflation.This marks a deceleration from the 1.7 percent real wage growth seen in the first half of 2024, and a further drop from the 3.3 percent increase recorded across all of 2024.
The strongest wage gains were observed in the facts and communication sectors,where collective labor agreement wages rose by 6.6 percent – a slight increase from the 6.2 percent growth seen the previous year. Conversely, public administration and public service employees experienced the smallest increases, wiht wages rising by just 2.1 percent, down significantly from the 7.7 percent increase recorded last year.
Healthcare institutions, encompassing both private companies and subsidized organizations, also saw wage increases, though at a more moderate pace than previously. Wages at private healthcare organizations increased by 4.8 percent, while those at subsidized institutions rose by 5.1 percent – both figures representing a decrease from 2024 levels.
The data arrives as Dutch inflation remains higher than the European average, posing a challenge for consumers.
