Strong rise in collective agreement wages, yet historic loss of purchasing power

Although wages which fall under collective bargaining agreements rose in 2022 at the fastest rate since 2008, inflation rose much faster. Statistics Netherlands (CBS) announced the economic development on Thursday, and noted that the difference between wage development and inflation has never been so great.

Collectively agreed wages in the Netherlands rose by 3.2 percent in 2022 compared to a year earlier. In the last quarter of the year, wages increased by 3.6 percent on an annual basis, the largest increase in twenty years. But consumer prices rose even more, according to Statistics Netherlands

Based on the first eleven months of 2022, prices jumped by about 10 percent on average. As a result, the Dutch population lost about 6 percent on balance even when considering the salary increase, the CBS calculated.

Statistics Netherlands started publishing analysis about collective agreement wage developments in 1973. This past year showed the greatest difference between inflation and wage development. On Tuesday, the statistics office will also publish the most recent inflation figures for December.

According to Statistics Netherlands, about eight out of ten employees are covered by a collective labor agreement and receive their salary on that basis. The sectors in which wages increased the most are education and cargo transport & storage, up by 5.2 and 4.6 percent respectively.

Collectively agreed wages rose the least in agriculture, forestry and fisheries. Those sectors saw a 2 percent gain.