Legal minimum wage 2024

On January 1, 2024, the legal minimum hourly wage will be introduced, and the fixed minimum monthly, weekly, and daily wages will disappear. From 2024, employers are obligated to pay employees at least the legal minimum hourly wage per hour.

Minimum wage increases by a minimum of 3.75%

On January 1, 2024, the statutory minimum wage will increase by 3.75% for a 36-hour workweek. The statutory gross minimum hourly wage for employees aged 21 and over will then be €13.27 per hour.

The introduction of the statutory minimum hourly wage means that there are no longer legally prescribed minimum daily, weekly, and monthly wages. Instead, there will be a single uniform minimum hourly wage that all employees in the Netherlands are entitled to. The monthly wage of a minimum wage earner will be determined by the actual number of hours worked. Currently, minimum wage earners who work 40 hours have a lower hourly wage than those who work 36 hours..

For more information, please visite the website of the government. Also, you can find an comprehensive knowledge document from the government here.

Practical example

Where previously the gross monthly salary was the same for a 36, 38, and 40-hour workweek, the hourly wage will be the same for everyone from 2024, and the monthly salary will vary. Someone with a 40-hour workweek will earn €230 more per month from 2024 than someone with a 36-hour workweek.

What does this mean for you as a customer of Upforce?

For now, no immediate action is required. After all, the minimum wage will only increase from 2024. However, it's important to prepare your business and systems for the fact that the minimum wage is going up. The introduction of the minimum hourly wage means that agreements in collective labor agreements (CAOs) and employment contracts will need to be adjusted in many cases.