Wages agreed in new collective labour agreements (CAOs) in the first half of 2025 rose by an average of 4.1%, but the FNV trade union federation says the increase falls short of what is needed to restore spending power.

The figures, published by the FNV on Thursday, are part of an evaluation of the CAO season so far. The union is calling for a 7% pay rise across the board, arguing that many workers have not been fairly compensated for the soaring inflation of recent years.

“This shows employers are still not willing to pay workers their fair share,” said FNV’s employment policy coordinator Petra Bolster. “Our demand for 7% is not arbitrary. We need around 4% just to offset past inflation.”

Bolster said many companies are still making healthy profits and government finances are strong, so there is room for further wage growth. “It’s time people start to make up for three years of sacrifices — and that takes more than 4.1%,” she said.

The inflation rate in May was 3.3%, well above the eurozone average. Food, drink and tobacco were over 7% more expensive than a year ago, while service prices rose by nearly 4%.

Employers’ organisation AWVN said that wage decisions must be made based on what individual companies and sectors can afford. Many businesses are still facing high labour costs, particularly in manufacturing, the agency said.

Union and employer talks remain deadlocked in several sectors, including the railways, where NS workers have staged multiple strikes.

The FNV is involved in 709 of the 818 CAOs in the Netherlands, covering around 5.7 million workers. This season, the union has signed 157 agreements, affecting 2.1 million people. The average duration of a CAO is one and a half years.

“Despite all the political talk about security of income during the last election campaign, it’s only thanks to union members that pay rises have been secured,” Bolster said. “They are the reason people in the Netherlands can still just about manage despite inflation.”