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You will (probably) only improve a bit in salary this year

This is apparent from calculations by HR service provider Visma Raet. To do this, they looked at agreements from some of the largest collective labor agreements in the Netherlands (see box), and what is changing in wages, pension contributions and tax rules.

What most determines the numbers on your first pay slip of the year: will your salary increase in January due to agreements in the collective labor agreement of your sector, or not?

If not, the result will be very poor. If the gross salary remains the same, the Dutch will increase by a maximum of 0.69 percent this year, partly due to the taxes that will decrease slightly this year.


Average income

Because it is agreed in many collective labor agreements that the salaries will increase a little (or a lot) every year, the increase will turn out to be somewhat higher than that for most people.

The gross modal income in 2022 will be 2,894 euros per month, or just under 35,000 euros on an annual basis. That is 2.77 percent more than last year. On a net basis, people with an average income are left with an increase of 2.3 to 2.65 percent.

Employees in the care, nursing and home care sector are lagging behind because their pension contributions also rise at the same time: they see an increase of between 2.13 and 2.28 percent.

What exactly will change?

People who earn the minimum wage see the most obvious change. As of January 1st the minimum wage has been raised and these people receive 1.2 percent more net salary.

Here too, employees in the care, nursing and home care sectors are lagging somewhat behind: they are ahead by 1.03 percent.


Salary vs Inflation

Chances are you will come out worse at the bottom of the line this year. Due to the sharp rise in prices of gas, electricity and products such as clothing, petrol and foodstuffs, inflation is currently low at record high.

In this video, Carien ten Have explains how it is possible that everything has become more expensive:


That means most people lose out in purchasing power. This effect can only be removed if a significant salary jump has been agreed in your collective labor agreement, or if you can negotiate a lot for a new job. Or if you take advantage of the tight labor market by for great rates to work as a self-employed person.

Despite high inflation and tight labor market doesn’t seem like it yet that companies offer massive wage increases.

There is one bright spot for people who work from home: from this year on, employers can tax-free homework allowance of 2 euros per day. Please note: this is instead of a travel allowance.


Calculations

To calculate how many people will increase or decrease in their salary this year, Visma Raet looked at the collective labor agreements concluded in the care, nursing and home care sectors, municipalities, education, metal & technology and the metal industry. This includes agreements on wage increases and pensions.

The concrete effect of your salary on your bank account mainly depends on the level of your pension premium and tax rules. Employers deduct payroll taxes, taxes and social security contributions from your gross salary. A pension contribution or company car – if this is the case – will also be deducted.

On the site of Visma Raet you can find calculate what your salary will look like at the end of this month.


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