Wages in Netherlands

We all connect the Netherlands with tulips, cheeses, water channels and great architecture. 

The Netherlands is part of the European Union and is located in northwestern Europe, with a population of over 17 million inhabitants, of which 80% are Dutch and the remaining 20% are of other nationalities. 

Economically, the country is ranked 16th in the world ranking. It is with a developed and open economy, combined with a peaceful and measured life, that the Netherlands is becoming a magnet for thousands of immigrants. The unemployment rate in the country as of February 2023 was 3.5%, among young people in the same period it was 7.8%. 

Salaries in the country are one of the highest in Europe and the state guarantees protection of the rights of every hired employee, regardless of his position and position. 

Finding a job is not difficult for both university graduates and people without any specialty. 

The minimum wage in the country is regulated by law and revised twice a year. Probably, for this reason, it is ahead of a number of countries in Europe in this indicator. The minimum wage for 2023 is 1934 euros per month. The working week is from 36 to 40 hours.   

Employers strictly adhere to the calculation of the minimum wage, because in case of non-compliance and violations, fines start from 12,000 to 40,000 euros. 

At the minimum wage work mainly young specialists in the first year,unskilled and foreign workers. 

The average salary in the Netherlands in 2023 ranges from 3,333 euros to 4,000 euros, however, according to SalaryExplorer, a person working in the Netherlands usually earns about 4,880 euros per month. The average gross income for a person working in the Netherlands is 38,500 euros gross per year. Please note that salaries vary greatly from one sphere to another and may be influenced by age,  sector, work experience and hours worked. 

When announcing a job, there is always an advantage for a Dutch citizen. In this way, the state ensures that its citizens have the opportunity to earn in their country. 

Business owners are responsible for the number of new jobs, applicants and the nationality of employees. 

A key role for high pay has the education, experience, qualification, knowledge of foreign languages of the applicant (about 90% of the population speaks English). 

Gender pay gaps  

Men’s pay is 12 to 15% more than women, yet compared to other countries, the Netherlands remains the smallest margin in this indicator. This difference is based on the fact,that women occupy positions with lower pay such as nurses, teachers, waitresses, administrators. 

Wages by occupation in the Netherlands  

The lowest salaries are offered in positions that do not require a specialty, and the highest for employees with higher special education. 

Employees are highly paid from the medical industry, information technology and the financial sector. 

The amount of wages depends not only on the profession, but also on the length of service. Young professionals who have just started work receive above the minimum wage while on probation, after which the salary can rise to 50%. 

Wages by region in the Netherlands  

The highest salaries are in the country’s major cities, with Amsterdam in first place. Many and varied jobs are available in Rotterdam, The Hague, Eindhoven, Utrecht. The lowest wages are mainly in agricultural regions, with seasonal workers receiving an average of 2,000 euros per month. 

Payroll taxes 

Salaries in the Netherlands are some of the highest in Europe, but so are taxes. The deduction of a percentage of payroll tax depends on the level of income of the person concerned, in the order as follows: 

Annual income up to EUR 19 600 is deducted 5% 

Annual income up to EUR 35,129 is deducted 9.45% 

Annual income up to 68,507 euros is deducted 37.1% 

Annual income over EUR 68,508 is deducted 49.5% 

The national insurance premium is 27.65%. 

Bonuses and gifts are also taxed. Every year with the onset of summer, employees receive 8% of annual income as holiday pay. The calculation of taxes also takes into account the number of minor children in the family, total income and other economic factors. 

How much does it cost to live in the Netherlands 

Prices depend on the region. In large cities, renting an apartment starts from 1,000 euros and depends on the location and size of the apartment, utility bills per month start from 200 euros per month, prices of products for consumption per person are 300 – 400 euros, public transport travel is about 100 euros, but you can save it using a bicycle. 

Generalization  

The Netherlands’ stable economy and regulated laws regarding workers attract many applicants from other countries. Qualified employees who are foreigners and speak English may receive the same salaries as nationals. In case of illegal employment of foreigners, the fine is not only for the employer, but also for the foreigner. Despite the high taxes, the country has a flexible system of compensations, thanks to which a person’s income cannot be lower than the level of subsistence established by the state. 

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