Employees earning minimum wage to see biggest income jump this year

Employees earning minimum wage and with a working week of over 36 hours will see the most net improvement in their income this year. That is because, as of this year, the minimum wage is no longer calculated per month, week, or day but per hour.

Salary service provider ADP Nederland reported this based on its own calculations. Anyone who works 40 hours a week and earns the minimum wage will get paid for four extra hours per week compared to 2023.

The difference can be considerable. In the construction sector, this change leads to a net increase of 205 euros per month for a 40-hour working week. In the metal and technology sector, the increase is 254 euros. In the government and the healthcare and welfare sector, the increase amounts to 112 and 116 euros per month, respectively.

Employees with an average salary will also see their income improve. In the metal and technology sector and in the government, it is a monthly increase of 74 euros. In healthcare and welfare and the transport sector, it is 73 euros. In construction, employees get an extra 75 euros.

For young people under the age of 21, the net salary may be lower due to the lowering age for pension participation age from 21 to 18 years. That means that from 2024, if there is a pension scheme with the employer, they will be obliged to pay pension contributions from a younger age.