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Wages rose by over 6% last year but fail to offset inflation

January 4, 2024
Civil service pay rose 7%

Wages grew by an average of 6.1% last year, the highest increase in 40 years, national statistics office CBS said on Thursday. The average rise in 2022 was 3.2%.

Nevertheless, the rise is not enough to offset inflation and spending power fell by an average of 2.1% over the year, the CBS said, quoting preliminary figures. Inflation did, however, fall strongly in the final quarter of the year. 

National government civil servants did best, with an average pay rise of 7%. In the private sector, the transport and logistics sector had the biggest average rise at 8.4% while the smallest – 2.4% – was for people working in the real estate sales and rental sector. 

The figures are based on formal CAO negotiations between unions and employers and cover around 75% of the workforce.

Employers organisation AWVN, which advises firms on salary strategy, said it expects this year’s rise could be slightly higher than 2023. “But companies have to be able to carry the increase,” spokesman Jannes van der Velde told broadcaster NOS. “Companies need to be healthy to pay good salaries.”

Some of the most recently agreed pay deals include between 14% and 20% for people working at Rotterdam’s public transport company RET and an average 22.5% rise for The Hague’s public transport workers, according to the Telegraaf.

The police also agreed a 9.5% over 18 months from July this year, the paper said.

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