Increase minimum wage as of July 1st 2021

Are you employed in The Netherlands and being paid minimum wage? Or do you have employees that you are paying the legal minimum wage (WML)? Then your employer is, or you are obligated to increase minimum wages as of July 1st 2021.

The legal set gross minimum wage in The Netherlands is €1701.00 per month as of July 1st 2021

Before this was €1684.80

This amount applies to employees from 21 years old with a full time employment. With a part time employment, the employee is entitled to an increase to proportion. With the tool of the Government (in Dutch) you can determine how much the legal minimum wage is per hour, day, week and month.

Take the following into consideration when determining and paying the minimum 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 until 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 when you deviate from the fixed minimum. 

Further reading

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

For more questions and/or information about wages, tax and employees, please feel free to contact Moneywood. We will gladly assist you.

Minimum wage in The Netherlands