Employees will have 3.7 percent more of their salary next year

Employees with an average income will keep 3,7 percent more of their salary next year. Due to changes in tax regulations, they will retain 91 euros more net per month of their gross salary of 3086 euros, as calculated by payroll service provider ADP. People on minimum wage or just above will benefit even more, because the net minimum wage will increase by 218 euros per month.

Those earning one and a half times the modal rate, will keep 87 euros more per month. If the salary is twice as high, they will receive 98 euros more net.

There are several reasons for the income increases. For most groups, the main reason is higher employment tax credit, which is an amount that is deducted from taxes. In addition, the tax rate decreases a bit and applies to a higher salary.

Furthermore, the minimum wage will increase by more than 10 percent due to an additional increase. This affects not only people who earned the minimum wage in 2022, but also those who were just above it.

In 2024, the minimum wage will increase again, as the government is no longer referring to a monthly minimum wage, but to a minimum hourly wage. Once this is in place, the government anticipates a 36-hour workweek, whereas the monthly minimum wage currently expects a 40-hour work week.

People receiving AOW benefits will also profit by this. Single people will receive 92 euros more per month, while married couples will receive 57 euros more per month twice.

However, a supplementary pension of 1,000 euros gross per month hardly brings anything extra. Of this, pensioners keep 2 euros more net per month.

In addition, there are other benefits for employees, as ADP pointed out. For example, employers can grant a higher untaxed travel allowance and also more allowances for working from home. The travel allowance will increase from 0,19 to 0,21 cents per kilometer, and the home-work allowance will increase from 2 euros to 2,15 euros per day. This leaves it up to employers to decide whether they want to implement these changes..

In general, ADP processes about 1.2 million pay slips in the Netherlands each month. The pay slip processor's figures are in line with data released last week by industry peer Visma Raet. That company only looks at payrolls in the healthcare, education and public sectors.