Average worker in Netherlands will earn €80 more per month in 2024: payroll service

Most workers in the Netherlands will earn a bit more next year, according to payroll service provider ADP. Someone with an average salary of almost 3,400 euros gross will get about 80 euros more net per month in 2024, NOS reports.

The net wages are increasing mainly due to higher tax credits. The increase in these income-related reductions on taxes more than made up for the higher income tax rate in the first bracket (+0.04 percent) next year.

People who earn minimum wage and work 40 hours per week will see the biggest increase in their income next year. They will earn 267 euros more per month compared to this year. That is mainly due to the changes in minimum wage. From next year, the Netherlands will work on an hourly minimum wage instead of the current monthly one. That means that people who work more hours will also earn more.

Minimum wage earners working 36 hours per week will get 131 euros more per month next year. Those who earn an average salary of 3,395 euros will get 79 euros more. And those who earn twice the average salary will get 76 euros more per month

Higher earnings won’t automatically mean better purchasing power next year, ADP said. Food prices are still rising in the supermarkets, health insurance premiums are increasing next year, and municipal taxes will also be higher. The higher salary might not be enough to compensate for all of that.

ADP stressed that its calculations don’t include pension premiums and supplementary income.