The coalition agreement states that the minimum wage will increase from 2024. The government has now decided to bring this increase forward by one year. The minimum wage is now 1725 euros gross per month for someone aged 21 or older.
Three steps
According to the first plans, the minimum wage should increase by 7.5 percent in two steps. From next year, that will be three steps of also 7.5 percent.
In the first step, the minimum wage increases along with the increase in the state pension. It is not yet clear whether this also applies to the next two steps.
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Spring note
Furthermore, the agreements that the coalition made earlier about the Spring Memorandum remain largely unchanged. Defense spending will rise sharply, in order to meet the NATO standard of two percent in a few years’ time. Earlier, the cabinet announced that 60,000 savers who have paid too much tax will receive compensation.
Companies pay a large part of the bill. In this way, they will pay the high rate of profit tax more quickly. This will apply from a profit of 200,000 euros, instead of the current 395,000 euros. And there are plans to hit directors-majority shareholders more heavily.
Expatregeling
In addition, the expat arrangement will be cut back. This scheme gives foreign employees with specific expertise who come to work here a tax advantage: they pay no tax on a maximum of 30 percent of their income. From now on, this scheme only applies to an income of a maximum of 216,000 euros, the so-called Balkenende norm.
The billions of funds that the cabinet has created to adjust problems related to climate and nitrogen will also not be left untouched. Reportedly, these funds are not indexed, which saves a lot of money with the current inflation.
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Last week Prime Minister Rutte and Minister Kaag of Finance visited all opposition parties, a tour that ended in disappointment. The opposition thought it could do business and came up with sky-high wishes, which the cabinet will not grant.
“Nevertheless, the cabinet hopes that the Spring Memorandum contains enough good things to convince a number of opposition parties,” says political reporter Roel Schreinemachers.
Support is needed because the cabinet does not have a majority in the Senate. “They are betting that it will be difficult for a number of parties to vote down this Spring Memorandum because express wishes such as linking the state pension to the minimum wage will not take place.”
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