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What’s included in the Dutch legal minimum wage?

On July 22, 2014 by Dutch Umbrella Company

The Dutch legal minimum wage is the wage you should earn according the law. Everyone working and between the age of 15 and the retirement (Old Age Pensions Act) age is entitled to earn at least this minimum amount. For young employees between ages 15 and 23 a lower minimum wage applies. Below we will explain how the minimum wage is composed.

The minimum wage is adjusted twice per year on January 1st and July 1st. The current minimum wage applicable as per 1 July 2014 can be found here.

Construction legal minimum wage

The minimum wage can consist of the basic salary plus several allowances. The basic salary is based on the average working hours per week and are mostly between 36 and 40 hours per week.

  • The gross wage can include:
  • the (basic) salary that your labour agreement mentions;
  • allowances such as performance allowance, shift allowance, irregular working hours, standby duty and other working conditions;
  • the regular commissions for the turnover that you make and get every payment period;
  • The rewards of third parties that emerge from work.  This could be tips or rewards where you and your employer made regulations for.

The total of these amounts cannot be less than the minimum wage.

Income that isn’t included in the Dutch legal minimum wage:

  • Money you make for overtime;
  • Holiday allowance;
  • Bonus payments due to profit made by the company;
  • Special one-time payments;
  • Payments/benefits on term you will receive under special conditions (for example pension and saving arrangements the employer contributes to);
  • Expenses;
  • Year-end bonus payments.

Part-time work

The amount of your gross minimum wage depends on the amount of hours you work. If you work part-time the gross minimum wage is calculated proportionally.

Source: http://www.rijksoverheid.nl/onderwerpen/minimumloon/vraag-en-antwoord/hoe-is-het-wettelijk-minimumloon-opgebouwd.html