Dutch wages see largest growth in over 40 years

Collective labor agreement (CLA) wages in the Netherlands increased by 6.9 percent in the third quarter of 2024, the highest quarterly rise since the late 1980s, according to preliminary data from Statistics Netherlands (CBS). Employers’ contractual labor costs, which include wages and premiums, rose by 7.0 percent in the same period.

The third quarter of 2024 also highlighted significant disparities between sectors. Workers in industries such as real estate, housing corporations, and financial services saw above-average increases. Conversely, sectors like transportation, storage, and energy experienced more modest wage growth.

Private sector workers experienced the largest gains, with wages rising 7.3 percent in the third quarter. Subsidized institutions saw a 7.1 percent increase, while public sector wages rose by 5.4 percent.

Between 2020 and the third quarter of 2024, wages under collective agreements increased the most in the public sector, climbing 21.9 percent. Subsidized institutions followed with a 20.0 percent increase, and private sector wages rose 20.2 percent during the same period.

In 2023, CLA wages rose by 6.1 percent, nearly double the 3.2 percent increase seen in 2022. This marked the steepest annual rise since 1982. The transportation and storage sector led with an 8.5 percent increase in 2023, while the real estate sector experienced the lowest growth at 2.5 percent.

The overall increase in employers' labor costs was driven by changes in insurance contributions. In 2024, the premium for long-term disability insurance (AOF) rose, while healthcare insurance premiums decreased, CBS noted.

CBS based the third-quarter data on 97 percent of CLAs covered by its statistics. Approximately 75 percent of all employees in the Netherlands are subject to such agreements.