Minimum wage

If you run a business in the Netherlands and employ staff, or if your business has its registered office outside of the Netherlands and you employ workers in the Netherlands, you must comply with the Minimum Wage and Minimum Holiday Allowance Act (Wet minimumloon en minimumvakantiebijslag, Wml). This Act stipulates that you must pay all workers between the ages of 23 and 65 at least the statutory minimum wage and holiday allowance. You must pay the minimum wage for young workers to staff between the ages of 15 and 23.

Applicable to flexworkers and temporary workers as well

The Minimum Wage and Minimum Holiday Allowance Act (Wml) applies to every worker in the Netherlands, including flexworkers (e.g. home workers and stand-by employees). Even if you hire employees temporarily or have employees work for you via a contractor/subcontractor, you are responsible for ensuring that they are paid at least the minimum wage. This is supervised by the SZW Inspectorate (Inspectie SZW), which can impose a fine if you fail to pay the full minimum wage.

Establishment of minimum wage amounts

The minimum wage amounts are adjusted every six months (in January and July) in accordance with the average trend in collective labour agreement (CAO) wages in the Netherlands. These amounts are published on the website of the Ministry of Social Affairs and Employment. The level of minimum wage for young workers depends on the age of the worker. The level of minimum wage is the same for everyone older than 23.

Underpayment

The SZW Inspectorate checks whether you at least pay the statutory minimum wage and the mandatory holiday pay. When underpayment is suspected, the SZW Inspectorate may examine, take away for copying and seize your administration. You may be fined should it emerge that you are paying too little.