Collective labor agreement wages rose less rapidly, but they improved so much

Collective labor agreement wages in the Netherlands rose less sharply in the third quarter than a year earlier. "We may be at our limit now."

In 2024, collective labor agreement wages in the Netherlands rose the fastest in over 40 years .

Last quarter, wages rose by 4.6 percent compared to the third quarter of last year. A year ago, they rose by 6.8 percent. This was reported by Statistics Netherlands (CBS) based on preliminary figures.

Adjusted for inflation, collective bargaining agreement wages rose by 1.6 percent in the past quarter. Statistics Netherlands (CBS) reports that alongside the wage increase, inflation also declined. In the first half of this year, the inflation-adjusted wage increase was 1.7 percent and 3.3 percent for 2024 as a whole.

According to the statistics agency, three-quarters of employees are covered by a collective labor agreement. Information and communication companies saw the fastest salary increases. Wages in these sectors rose by 6.6 percent, following a 6.2 percent increase the previous year. Employees in public administration and government services saw the least improvement. Their collective labor agreement wages rose by 2.1 percent, after receiving a 7.7 percent increase the previous year.

Employees at private companies and subsidized organizations, particularly healthcare institutions, also saw their wages rise faster than average. Wages at private organizations increased by 4.8 percent, and at subsidized institutions by 5.1 percent. These are lower percentages than in 2024, however.

The fact that wages are still rising is partly due to the tight labor market . Wages are also keeping pace with inflation. But the labor market is less tight than before, CBS chief economist Peter Hein Van Mulligen told NOS . And then wage growth is slowing down somewhat. "Wages have been rising so rapidly for so long now. Perhaps we've reached our limit now." Nevertheless, according to him, purchasing power still looks good: wages are still rising faster than prices.

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