Wages have not risen as fast in 14 years, but inflation has risen even more | Opera

This was reported by the Central Bureau of Statistics (CBS). In the last quarter of 2022, collectively agreed wages were even 3.6% higher than in the same quarter of the previous year. Such an increase has not occurred for twenty years.

But those sensational figures only mean that the decline in purchasing power is being dampened. In the first eleven months, consumer prices rise – the inflation – 10 percent, as a result of which the wage increase completely evaporates. On Tuesday, Statistics Netherlands is to release new inflation data, which should be slightly more favourable. Energy and fuel, for example, have become cheaper, but inflation will still far outpace wage growth.

This was the reason why Chairman Klaas Knot of De Nederlandsche Bank last month ask for higher wage increases. Companies make enough money to pay for it, she said.

Not everyone has a higher salary. Those covered by a collective labor agreement in force received at most a few percentage points more. While in the new collective labor agreements, such as for the staff of academic hospitals and NS, there is an increase of about 10 percent.

Eight out of ten employees are covered by a collective labor agreement. Last year, in particular, civil servants received a lot: an average of 4.1 percent. In 2021, the government wage increase was the smallest at 1.9%.

Education led the way with a 5.2% collective agreement wage increase. In the last quarter it was even 7%. The increase in education is partly due to the equalization of wages in primary and secondary education.

In the corporate sector, the average increase was 3%, with outliers in transportation and logistics (4.6%). Wages increased least in agriculture, forestry and fishing: 2%.

Starting this year, the wage evolution of the collective bargaining agreement is a factor in determining the maximum permissible rent increase in the private sector.

Watch all of our economic videos here: