Minimum wage as of July 1, 2020

July 4, 2020

The minimum wage applies to every worker in the Netherlands. Workers from the age of 21 receive the adult minimum wage. Young people aged 15 to 20 receive a minimum wage that is appropriate to their age. These wages are lower than the adult minimum wage. Every six months the minimum wage amounts go up slightly. So again on July 1, 2020.

Who does the minimum wage apply to?

The minimum wage represents a minimum salary that must be paid by employers in the Netherlands to their employees. This is laid down in the Minimum wage and minimum holiday allowance law (WML).. As an employer, you must pay at least that minimum wage, both to permanent employees as to employees with temporary employment contracts. The minimum wage also applies to vacation workers, temporary workers, on-call workers, payroll workers, home workers, flexible workers and workers with work permits.

Also, if you as a principal are working with contractors or subcontractors, you are, by virtue of the Law to tackle sham constructions (WAS), also liable if the contractor fails to pay the collective or minimum wage to its workers. It must also legal minimum wage to be paid for piecework and extra work. 

You do not have to pay minimum wage to independent contractors, interns and employees working and living abroad. 

What is the minimum wage as of July 1, 2020?

The amount of the minimum wage depends on a number of factors: age, working hours and number of working hours. Gross amounts are always used. What the employee from this net depends on his or her personal situation. In addition to the minimum wage, the worker is also entitled to 8% vacation allowance.

Effective July 1, 2020, employees age 21 and older will be entitled to a minimum wage of:

• € 1,680.00 per month
• € 387.70 per week
• € 77.54 per working day, if a different duration is agreed upon

Effective July 1, 2020, employees aged 15 to 20 who work a full work week are entitled to a minimum youth wage of:

• 20 years € 1,344 per month
• 19 years € 1,008 per month
• 18 years € 840 per month
• 17 years €663.60 per month
• 16 years € 579.60 per month
• 15 years € 504 per month

If full work is not worked, then a proportionate part of the minimum wage paid. The provision of what a full working week depends on what is normally applicable within the sector in which your company operates and within the possible collective bargaining agreements. Usually it is 40, 38 or 36 hours. 

example
Take Bob, for example: he is 25 years old and works 24 hours a week. In the company in which he works, a full work week is 36 hours. If he only works 24 hours of that per week, he works part-time. Is then entitled to a gross minimum wage of 24/36 x €1,680 = €1,120 gross per month.

The Collective Bargaining Agreement (CBA).

Is there a collective bargaining agreement (CLA) at the company or for the industry you work for? If so, your employer must provide these CLA follow. Usually these collective bargaining agreements are more favorable than the legal regulations. For example, it quite often results in a higher wage than the agreed minimum wage. In any case, the collective bargaining agreement should never contain a wage lower than the minimum wage.

What counts toward determining the minimum wage?

As an employer, are you paying adequate wages?

• The (base) wage: the wage you agreed to in the employment contract?
• Compensation for additional and/or overtime work?
• All applicable allowances: shift work, delivered performance or irregular working hours?
• Fixed (weekly or monthly) pre-arranged revenue rewards?
• Tips, possibly after application Of a sharing key with fellow employees?
• The total of all these amounts can never be less than the legal minimum wage. Here has the employee is entitled to.

Income that does not count toward the minimum wage

• Vacation money
• special benefits, such as A benefit that the employee receives from time to time for sales he has achieved
• reimbursements for expenses your employee must incur for work (clothing, business travel, lunch allowance, etc.)
• profit distributions
• benefits to which you contribute, such as retirement and savings plans
• year-end benefits

This income is given to the worker on top of his minimum wage.

Bring your temporary and self-employed workers into back office support

At Payoffice back office support we are always well aware of the latest laws and regulations. In our back office your temporary workers are in good hands. Our fully automated administration also allows us, for example, to implement minimum wage increases in a timely and accurate manner. No manual calculations and no exhausting administration for you as an entrepreneur. This leaves you more time for your core activities and we do where we are good at: keeping your personnel records.

Accommodate your temporary and other flex workers in a back office administration as that of Payoffice B.V. offers you many benefits.

Want to know more? Call us 040 3038500 or send an email info@payoffice.nl.

No rights can be derived from the amounts mentioned in this article.