Disposable income on the rise thanks to collectively bargained wage increases

The real disposable income of homes in the Netherlands grew by 1.6 percent in the second quarter compared to a year ago, mainly thanks to an increase in wages of employees due to collective bargaining agreements (cao). This was reported by Statistics Netherlands (CBS).

The total compensation for employees grew by 7.2 percent, the number of staff jobs grew by 0.7 percent, and the cao wages were 6.4 percent higher. When calculating real disposable income, the net disposable income is corrected for price increases.

Furthermore, the total benefits received also increased by 7.2 percent. According to CBS, this is mainly because benefits are often linked to the minimum wage, which increased by almost 7 percent compared to a year earlier.

The mortgage debt grew by 9.2 billion euros compared to a quarter earlier to 870.7 billion euros. CBS stated that the mortgage debt is increasing more strongly due to higher house prices in the second quarter than a year ago and more homes being sold.