Increase minimum wage as of Januari 1st 2025

Do you have employees that are receiving the legal minimum wage (WML)? Then you are required to increase their wages as of Januari 1st 2025. 

Note: On January 1, 2024, the statutory minimum hourly wage was introduced. From this date, employers are required to pay employees at least the minimum hourly wage. This takes the place of the previous monthly minimum wage.

The minimum hourly wage for employees aged 21 and over as of 1 July 2024 is € 14,06.  Previously this was € 13.68.

Do you employ employees under the age of 21? Then you are required to pay them a percentage of the minimum hourly wage as listed below:

 
> 21 years  100%
20 years 80%
19 years 60%
18 years 50%
17 years 39,5%
16 years 34,5%
15 years 30%

Important considerations when determining and paying the minimum hourly wage

  • The minimum wage is adjusted every six months. This always happens on January 1st and July 1st. 
  • The minimum wage is the gross wage of employees, wage taxes will not to be withheld from this. 
  • For employees up to 21 years old, the minimum youth wage applies. This is a percentage of the amount mentioned above. An employee who is 15 years old is entitled to (a minimum of) 50% of the minimum wage. For someone who is 20 years old, this is 80%. 
  • Minimum wages can vary based on the sector. When the amount of the minimum wage differs in your sector from the legally determined minimum wage, then this is included in the collective labour agreement. The minimum wage can be higher than the legally determined amount, but never lower. You risk fines if you deviate from the fixed minimum. 

Further reading

Read more about payroll taxes on the website of the Dutch Government. Here you find further information on regulations for employers concerning (minimum) wage.  Click here for an overview of the percentages for minimum youth wages per age. 

For more questions and/or information about wages, tax and employees, please feel free to contact Salupa. We are here to help.