Average wage rises slowed in July as inflation fell again

Wage rises have slowed in the most recent round of pay deals, with an average increase of 7.2% recorded in July, according to preliminary figures from employers’ advisory group AWVN.

In May salaries rose by an average of 8.2% on the back of inflation and in June the figure was 8%. Inflation has now fallen to below 5%, although food inflation is still high.

Nevertheless, wage increases have been outstripping price rises since April as unions try to repair the loss of spending power over the past year. The Netherlands ended the automatic link between wages and inflation in the 1980s.

“That effect will continue for a while,” an AWVN spokesman told the Telegraaf. “Many pay deals still have to be agreed and in some sectors wages only rose marginally last year. So the unions are still sounding the alarm.”

Just 11 pay deals were signed in July, compared with over 30 in a normal month. Among the agreements were a 10.8% rise for trade school teaching staff and 7.2% for staff at HBO colleges.

In June, by contrast, 40 deals covering one million workers were agreed, resulting in an average pay rise of 8%.

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