In January wages in the Netherlands' business sector increased by 3.4 percent - the biggest increase in ten years. At the same time, price increases slowed down, leaving workers with more money to spend on balance, NOS reports based on figures from Statistics Netherlands.
This year, working people with children will see their purchasing power increase the most, by around 1.5 to 2.5 percent, the Netherlands' institute for budget information Nibud reported on Thursday based on the latest calculations. Some families my even see their purchasing power rise by up to 4.5 percent, NU.nl reports.
Prices are expected to rise by 1.6 percent in 2020, while wages will increase by 2.8 percent on average. People who work will also benefit from the higher labor discount, and parents will benefit from better child-related benefits.
The net wage of Dutch employees with an average income will increase by around 50 euros per month next year, according to calculations by payslip company Visma Raet based on figures released on Budget Day on Tuesday, RTL Z reports.
At 3:00 p.m. on Tuesday the Rutte III government will present its budget for next year. But as every year, a number of the government's plans already leaked to the press. Here follows a summary of what we know so far, compiled by NOS and RTL Nieuws.
A decade after the biggest economic crisis since the 1930s hit the Netherlands, most Dutch have recovered and are satisfied with their lives. But that does not apply to a group of around 400 thousand people who are still struggling, social and cultural planning office SCP said in its report The social state of the Netherlands. The SCP looked at the state of the Netherlands in the period 2008 to 2018, NOS reports.
The coalition parties in the Rutte III government reached broad agreements on the focus of the Netherlands' tax plans for next year. Low- and middle-income households must see an improvement in their purchasing power. And it must become easier for people starting out on the housing market to find a home, NOS reports.
"We have taken further steps on our way to Prinsjesdag", Prime Minister and VVD leader Mark Rutte said after an hours long meeting between the coalition parties and the Ministry of Finance, which ended at around midnight on Thursday.
Economic growth in the Netherlands will decline to 1.4 percent growth next year, according to the August Estimation by central planning office CPB. The declining growth is due to "bad wind from abroad", the CPB said, NU.nl reports.
The agreements made in the climate agreement will likely not achieve the Netherlands' goal of reducing its CO2 emissions by 48.7 megatons in 2030 compared to 1990. The Industry in particular is not providing enough CO2 reductions, were the main conclusions of the Netherlands' environmental assessment agency PBL and the Netherlands' central planning office CPB's calculations of the agreement, NU.nl reports.
The first debate for the Provincial State elections of 20 March, which will ultimately also determine the composition of the Senate, happened on RTL on Thursday. The climate was one of the main points that the leaders of the VVD, CDA, D66, PVV, SP, PvdA and FvD debated, NU.nl reports.
The purchasing power increase that the central planning office CPB calculated for this year remains the same, despite a higher energy bill. 96 percent of all Dutch households will see their purchasing power increase, by an average of 1.6 percent this year and 1.3 percent next year. The increase is mainly due to higher wages, CPB said in a new estimate published on Tuesday, NU.nl reports.
Most Dutch households will have a bit more to spend this year than in 2018, despite higher energy bills, higher health insurance premiums and higher VAT, according to budget institute Nibud's latest purchasing power calculations. Most households will have between a few euros and 131 euros extra left over each month, NU.nl reports.
Working Dutch have less money left over this year than Minister Wouter Koolmees of Social Affairs and Employment reported on Budget Day, due to an error made in the purchasing power figures. The figures for next year are correct, the Minister wrote in a letter to parliament, RTL Z reports.
All workers saw their purchasing power decrease. Single parents with a modal income even saw their purchasing power decrease by 0.3 percent, instead of the 0.1 percent increase Koolmees reported in September.
A growing group of working Dutch live in poverty, social and cultural planning office SCP said in a report published on Wednesday. In 2014 a total of 4.6 percent of Dutch workers, or 320 thousand people, lived below the poverty line, compared to 3.1 percent in 2001. Of these working poor, 175 thousand are employed and 145 thousand are self-employed, ANP reports.
Almost half, 46 percent, of the Dutch population saw their purchasing power decrease last year, Statistics Netherlands reported on Thursday. The purchasing power developments varied considerably in 2017. For a fifth of the population, purchasing power decreased by at least 7 percent. Another fifth saw their purchasing power increase by 10.9 percent.
The government parties VVD, CDA, D66 and ChristenUnie reached an agreement on the budget for 2019 and agreements were made about how dividend tax will be abolished, the parties said after a final meeting on Thursday evening. The parties would give no details about their agreements. That will be presented on Budget Day, the third Thursday in September, NOS reports.
The Rutte III government needs to take measures to encourage purchasing power development, because employees otherwise benefit from economic growth only to a limited extent, Rabobank concluded in a study into wage developments. "While the Dutch economy grew by 2.9 percent last year, the collective bargaining wages only climbed 1.4 percent - only barely enough to rise above the 1.3 percent inflation", the bank said, NU.nl reports.
The Dutch economy will continue growing this year and next year, though a bit slower than expected, central planning office CPB said on Thursday. The CPB expects 2.8 percent growth in 2018 and 2.6 percent in 2019, instead of 2.9 percent and 2.7 percent as the office expected in June, NU.nl reports.
The Dutch economy will continue to grow strongly this year and next year, according to expectations announced by the Netherlands office for economic policy analysis CPB on Tuesday. Next year unemployment will drop to its lowest level since 2001, NU.nl reports.
Today is the last Budget Day for the departing Rutte II cabinet. In tradition and ceremony, the day is expected to look like every other Budget Day, with politicians decked out in fancy hats, the Royals arriving at the Ridderzaal in The Hague in a carriage and the famous balcony scene after the throne speech. But given the current VVD and PvdA government's departing status, no big news is expected in the budget. Big changes are left up to the new government.
The average purchasing power of Dutch increased by 2.7 percent last year, the strongest increase since 2007, Statistics Netherlands announced on Friday. Despite this, one in three Dutch saw their purchasing power decrease, NU.nl reports.
The increase can be attributed to a package of debt relief measures and an average of 1.8 percent increase in collective bargaining agreement wages, according to the stats office. The 0.3 percent increase in consumer prices, pushed purchasing power down somewhat.
The Dutch economy continues to grow steadily and its growth is expected to reach 3.3 percent this year, according to planning office CPB's estimate in its Macro Economic Exploration, which was published on Wednesday. If this estimate holds true, this will be the first time the Dutch economy grows by more than 3 percent since the outbreak of the economic crisis in 2007. In 2018 the gross domestic product is expected to grow by 2.5 percent, NU.nl reports.
The Dutch economy will grow by 2.4 percent this year and 2 percent next year, central planning office CPB expects in its latest estimation. In the previous estimation in March, the CPB expected 2.1 percent and 1.8 percent growth for 2017 and 2018 respectively, ANP reports.
Unemployment is expected to continue its decline, to 4.9 percent this year and 4.7 percent next year. The government finances also look healthy, with a surplus of 0.5 percent expected for this year and 0,7 percent for next year.
In the coming years the Dutch economy will continue to grow and the government will again have billions of euros in budget surplus, but the growth in purchasing power will slow, according to the Dutch central planning office CPB's latest estimate, NOS reports.
The Dutch economy will show solid growth again this year, though it will be weaker than in 2016, ING's Economic Bureau predicts in estimates published on Friday. The bank expects 1.6 percent growth this year, compared to 2.2 percent last year, ANP reports.
The lower growth can partly be attributed to the housing market downshifting compared to the buoyant growth in the past few years. Turbulent world trade is also expected to lower exports this year.