NederlandsEvery employee in Nederland is entitled to the minimum wage. As of 1 July 2020, the gross amounts of the statutory minimum wage and the minimum youth wage have been increased by 1.6%. What should you as an employer pay attention to?
Minimum wage increased as of 1 July
Every employee in Nederland is entitled to the minimum wage. This is laid down in the Minimum Wage and Minimum Holiday Allowance Act (WML). Adults from the age of 21 receive the full minimum wage and younger employees from the age of 15 are entitled to part of it.
Who does the minimum wage apply to?
The minimum wage is a minimum wage that employers must pay to their employees. This legal minimum applies to both permanent and temporary staff. Employees with a flexible contract are therefore also entitled to the minimum wage, such as temporary workers, holiday workers, on-call workers and payroll employees.
How high is the minimum wage?
The amount of the minimum wage depends on age. The amounts are gross amounts, the net amount that an employee has left depends on the usual working hours per week and on his personal situation. Keep in mind that you also pay holiday allowance (8% of the salary).
The minimum wage amounts are set per month, per week and per (working) day. Een minimum wage per hour is not regulated by law, but is published every six months in the Government Gazette for a 40-, 38- and 36-hour working week. The hourly wage can differ per sector, depending on the number of hours that count as normal working hours.
In principle, the minimum wage is adjusted twice a year in line with the development of collectively negotiated wages, on 1 January and 1 July. As of 1 July 2020, the minimum wage has been increased by 1.6%.
Minimum wage (21 years and older)
January 1, 2020 July 1, 2020
Month € 1653.60 € 1,680
Week € 381.60 € 387.70
Day € 76.32 € 77.54
Minimum youth wage (15 to 20 years)
January 1, 2020 July 1, 2020
20 years € 1322.90 € 1,344
19 years € 992.15 € 1,008
18 € 826.80 € 840
17 years € 653.15 € 663.60
16 € 570.50 € 579.60
15 years € 496.10 € 504
Employees who do not work a full working week are entitled to a proportional share of the minimum wage. All minimum wage amounts can be found on Rijksoverheid.nl . There is also a handy calculation tool with which you can calculate what employees should earn at least per month, week, day and hour.
Avoid underpayment
As an employer you are obliged to pay at least the minimum wage. If you don't, you're breaking the law. What should you think about?
1. Do not forget to implement the six-monthly increase in the minimum wage. Check wage agreements that have been laid down in a collective labor agreement. It is possible that wage scales set by the increase in the minimum wage fall below the statutory minimum.
2. Consider implementing the increase when a young employee (15-20 years) has become one year older. The amount of the minimum youth wage depends on age.
3. Do not forget to introduce an increase if a young employee with the minimum youth salary turns 21. This employee is then entitled to the adult minimum wage.
4. Keep in mind that if you make a net wage agreement with an employee, the corresponding gross wage is not lower than the statutory minimum wage.
5. Don't forget the holiday allowance. In addition to the right to a minimum wage, employees are also entitled to a holiday allowance of 8% of the gross annual wage.
6. Be aware that a lower minimum wage applies to employees who work on the basis of an employment contract entered into in connection with a BBL (BeroepsBegidsde Leerweg). You can find these amounts here.