Dutch workers to see continued wage growth amid labor shortages
Workers in the Netherlands can expect another significant salary increase in 2025, even when switching jobs, as labor shortages continue to drive up wages. The average wage increase remained high in January, with little indication that the trend will slow down soon.
The wage growth is primarily fueled by a tight labor market and strong demands from labor unions. However, employers are showing increasing caution as many have already compensated employees for past losses in purchasing power. Rising business costs and concerns about economic conditions are also leading some companies to be more conservative with salary hikes.
Economists at RaboResearch expect collective labor agreement wages to rise by 5.9 percent in 2025 and 4.8 percent in 2026. They attribute this to the persistent labor market tightness.
“Since inflation is expected to remain relatively high, we anticipate that workers will only see structurally higher real wages by the end of 2025,” RaboResearch stated.
According to preliminary figures from employer association AWVN, wages increased by an average of 4.5 percent in January. Seven collective labor agreements (cao’s) were concluded that month, covering approximately 20,000 workers. The sharpest wage increases were recorded in the hospitality, construction, wholesale, business services, education, and transport sectors.
“We see a trend where wage growth is slowing slightly but remains around 4 percent,” an AWVN spokesperson said. “That is still higher than inflation. However, businesses are facing higher costs, which affects their competitive position. Wage capacity must be evaluated per company and sector.”
The consumer price index for goods and services was 3.3 percent higher in 2024 than in the previous year, according to figures from statistics agency CBS. Inflation in January also stood at 3.3 percent.
AWVN acknowledges that labor market shortages and rising excise duties are contributing to inflation. “But wage increases are also playing a significant role,” the organization stated.
Despite this, labor union FNV is sticking to its demand for a 7 percent wage increase. According to the union, businesses have recorded strong profit growth in recent years and still have room to raise salaries.
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