Higher wages and social benefits boost Dutch spending

Dutch households had more money to spend in the second quarter of 2025, the CBS reported on Monday, as higher wages and increased social benefits outweighed rising taxes. The real disposable income — adjusted for inflation — rose 2.8 percent year-on-year.

Employee compensation contributed the most to the income growth. Total wages for employees increased 5.9 percent, while the number of jobs grew 1.5 percent, and collective labor agreement (CAO) wages rose 5.3 percent. Self-employed workers saw their mixed income rise 0.8 percent.

Social benefits increased 6.2 percent, largely because many are tied to the minimum wage, which itself rose 6 percent over the past year. At the same time, households paid 3 percent more in taxes and social premiums.

Mortgage debt also continued to climb, rising 12.6 billion euros compared with the previous quarter to a total of 911.6 billion euros. Rising home prices and higher sales contributed to the increase.

The rise in household income and consumption coincided with modest GDP growth. According to CBS’s second estimate, the Dutch economy grew 0.2 percent in Q2 2025 compared with the previous quarter and 1.7 percent year-on-year.

Household consumption contributed most to the GDP increase, supported by higher disposable incomes, while investments and public spending also played a positive role. Employment also rose by 28,000 compared with the previous quarter, further underpinning economic growth.