The statutory minimum wage and statutory minimum holiday allowance apply as minimum remuneration for work performed in employment in the Netherlands. The Netherlands Labour Authority checks whether employers comply with this and imposes fines if employees are underpaid.
Minimum Wage and Minimum Holiday Allowance Act
The Minimum Wage and Minimum Holiday Allowance Act regulates the minimum wage and minimum holiday allowance. Both Dutch and foreign employers and employees must comply with the associated rights and obligations in the Netherlands. The minimum youth wage applies to young people between the ages of 15 and 21.
Minimum hourly wage since January 2024
The statutory minimum hourly wage was introduced on 1 January 2024. Fixed minimum monthly, weekly and daily wages no longer apply. Since 1 January 2024, employers are obliged to pay employees at least the statutory minimum hourly wage. One fixed minimum hourly wage always applies for all employees aged 21 and above. Since 1 January 2024, fixed minimum hourly youth wages apply for employees under the age of 21.
Prohibition of deduction from/set-off against minimum wage
Since 1 January 2017, it is forbidden to make a deduction from or set-off against the minimum wage. Employees must receive at least the full net minimum wage in their bank account. Employers must pay at least the amount of the minimum wage by bank transfer and to specify expense allowances on the payslip. This allows the Labour Authority to better monitor whether the minimum wage is actually paid. Exception: under certain conditions, an employer may withhold money from the minimum wage to pay housing costs or health insurance premiums for the employee. More information about withholding amounts from workers' minimum wage (Dutch) can be found at rijksoverheid.nl.
Underpayment
The Netherlands Labour Authority checks whether employers comply with the Minimum Wage and Minimum Holiday Allowance Act. Employers who underpay their employees can be fined by the Labour Authority. The fine depends on how far the wage deviates from the statutory minimum wage and the statutory minimum holiday allowance. View more information on our web page on fines and other possible sanctions Dutch).
Cases of underpayment can be reported (anonymously) to the Netherlands Labour Authority. Cases of suspected underpayment can be reported as well.
Labour exploitation
Underpayment may also be a sign of labour exploitation. Labour exploitation occurs in all sectors. View more information on labour exploitation (Dutch).