A higher minimum wage and slightly lower taxes mean workers in the Netherlands will see a significant salary increase in 2023, according to HR service provider Visma Raet, which annually calculates the effects of taxes on people’s salaries.

The company’s latest calculations show that even if a person’s gross salary remains the same, they can expect to take home around 4% more from January 2023. That compares to last year’s maximum 0.69% increase in net wages.

Joke van der Velpen, Visma Raet’s manager of legislation and regulations, chalks up the difference to changes in taxes and corporate pension payments.

‘As we already saw in the Budget Day plans, the employed person’s tax credit will increase faster in 2023 than in 2022. The basic income tax rate has also fallen. All this together results in a higher net salary,’ she says.

‘Many Dutch people are experiencing financially challenging times due to high inflation. It is then extra important to know what awaits you financially.’

Net wages

According to Visma Raet, the Dutch net minimum wage will increase by more than 12%. Care workers on a minimum wage will see a growth of 13.57% in their net salaries next year—some €209.11 more per month—while employees in the government and education sectors will see their salaries increase by 12.28% (an additional €196.54 per month).

With the increase in the gross minimum wage, calculates Visma Raet, the gross average income will also rise to €3,086 per month, with the average earner receiving an additional €80 monthly.

‘Due to inflation and high energy prices, many people are now barely making it with their salary,’ says Van der Velpen. ‘Then it is nice to know that you will improve from January. Their problems have not been solved, of course, but it is a positive step.’