Cabinet will increase minimum wage from next year

The cabinet wants to start raising the minimum wage earlier. This is what sources report to DecceIt. The coalition agreement still states that the minimum wage will increase extra from 2024, but the cabinet will now make that next year.

VVD, D66, CDA and ChristenUnie had agreed an increase of 7.5 percent in two steps in 2024 and 2025. To improve the purchasing power of the minima faster, this will now be three steps from 2023 onwards.

The four parties agreed this in the context of the talks about the Spring Memorandum. The plan is expected to be approved by the Council of Ministers next Friday.

AOW pension link

For the first of the three steps, the minimum wage will remain linked to the state pension, sources report. Whether that also applies to the two steps thereafter is still unclear.

The coalition agreement states that the cabinet does not want to let the state pension grow at all with the additional increase in the minimum wage, but there was a lot of opposition from the opposition to this.

The coalition parties have been discussing the Spring Memorandum for a number of weeks. This needs to be adjusted because billions more have been spent than planned. This week and last week, Prime Minister Rutte and Finance Minister Kaag spoke with opposition parties. These talks included purchasing power, which is under pressure due to high inflation.

PvdA and GroenLinks had asked for a substantial increase in the minimum wage, more than what the cabinet is now coming up with. It is therefore questionable whether this is enough for the left-wing opposition. The two parties may be required in the Senate to get the budget through. In the senate, the coalition does not have a majority.