Wage rises are outstripping inflation, June pay deals show

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Wages in the Netherlands rose by an average of 3.9% in June, taking the increase over the first half of the year to 4.1%, new figures from employers’ organisation AWVN show.

The rise reflects continued pressure from trade unions at the bargaining table and the need for employers to retain staff in a tight labour market, website Nu.nl reported. In June alone, 25 collective labour agreements were finalised covering 270,000 workers.

Sectors with the sharpest wage increases included hospitality, healthcare, construction and agriculture, according to AWVN’s preliminary data.

Although wages have risen significantly in recent years due to high inflation, trade union FNV says workers are still lagging behind. The union is demanding a 7% rise in new pay deals, arguing that earlier increases have not fully compensated for the sharp fall in spending power.

Inflation stood at 3.1% in June, driven mainly by higher prices for services, food, drink and tobacco, according to national statistics office CBS.

The AWVN says that wage decisions must be made based on what individual companies and sectors can afford. Many businesses are still facing high labour costs, particularly in manufacturing, the agency said.

Economists at RaboResearch expect average wages to rise 5% over the whole of 2025, with a slower increase of 4.1% forecast for 2026. “The tight labour market gives unions strong leverage in negotiations, even though most of the recent loss in purchasing power has now been recovered,” economist Hugo Erken told Nu.nl.

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