MPs soften plans for minimum wage rise, extra tax on banks

The Netherlands has never had a female prime minister. Photo:

MPs have softened their demands for changes to the caretaker cabinet’s 2024 spending plans in the wake of criticism from ministers about the financial underpinnings. 

For example, MPs have agreed to cut their proposed increase in the minimum wage from 1.7% to 1.2%, which will reduce the problems for the private sector and the treasury. State pensions and benefits rise in line with the minimum wage. 

The proposed extra tax on bank profits will also rise less than suggested earlier – €150 million rather than €350 million – and the tax on share buybacks will come into effect in 2025, not next year as hoped.

GroenLinks-PvdA, ChristenUnie and D66 have drawn up a more moderate proposal that can count on majority support in parliament, the Financieele Dagblad said.  

The plans still have to be voted on in the senate, and support there is not guaranteed. The pro-farmers BBB has been responsive to protests from both employers and banks and party leader Caroline van der Plas has hinted that BBB senators will vote no. 

Van der Plas earlier supported the idea of a bank tax and tax on share buybacks. 

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