The Netherlands' largest trade union, FNV, is taking its fight for worker protection to Brussels. After the Dutch Senate approved a new minimum wage law on January 21, 2026, FNV announced plans to ask the European Commission to investigate whether the Netherlands is properly following EU rules.
What's the problem?
The EU passed a directive in 2022 that sets standards for minimum wages across all member countries. One key goal was to limit exceptions and deductions that reduce what workers actually receive. FNV argues the new Dutch law fails to meet these standards in two important ways.
First, the Netherlands allows employers to deduct housing costs from migrant workers' wages. Currently, employers can withhold up to 25% of the minimum wage to cover housing they provide. This practice is common among temporary employment agencies that bring workers from countries like Poland, Romania, and Bulgaria to work in Dutch greenhouses, factories, and construction sites.
Second, the Netherlands still pays young workers less than adults for the same work. A 20-year-old earns only 80% of the full minimum wage. A 19-year-old gets just 60%. And an 18-year-old receives only half of what a 21-year-old would earn for identical work.
The housing deduction debate
The housing deduction has been controversial for years. In 2020, the government commissioned a report from the Aanjaagteam Bescherming Arbeidsmigranten, led by former SP party leader Emile Roemer. The report warned of widespread abuse of migrant workers, including severe underpayment, poor housing conditions, and dependency structures that in some cases amounted to human trafficking.
The previous minister, Eddy van Hijum, had proposed phasing out the housing deduction, warning it made workers vulnerable to exploitation. However, his successor, Mariëlle Paul, reversed course last year. Paul argued the system helps workers find housing and that conditions on rent quality provide some oversight of living standards.
Critics say the arrangement creates an unhealthy dependency. Workers who rely on their employer for both their job and their home can lose both if they complain about conditions or try to leave. The Labour Inspectorate warned that it can actually be more profitable for employers to house migrant workers than to employ people who already have homes in the Netherlands.
FNV's interim chair Dick Koerselman calls this discrimination based on nationality. The union wants the European Commission to examine whether allowing such deductions violates EU law.
Photo Credits: Rvanstekelenborg
Why young workers earn less
The Dutch youth minimum wage dates back decades. The idea was to encourage employers to hire young people and to keep teens in school rather than dropping out for full-time work. By making young workers cheaper to employ, the government hoped to reduce youth unemployment.
However, FNV argues there is no proof that lower youth wages actually prevent unemployment or early school leaving. Neele Boelens, who leads FNV's youth division, says the policy simply weakens minimum wage protection for all young workers.
The numbers are significant. As of January 2026, an adult worker earns €14.71 per hour. A 20-year-old earns €11.52, a 19-year-old gets €8.64, and an 18-year-old receives just €7.20 per hour. A 15-year-old can legally be paid as little as €4.32 per hour.
Studies have shown this system can lead to age discrimination in hiring. In one documented case, a 25-year-old woman was rejected for a shop assistant job because the employer said she was "too old and too expensive" compared to younger candidates.
Some progress has been made through collective bargaining. Major companies including IKEA and Dutch railway operator NS agreed in 2022 to pay the full adult minimum wage to all workers aged 18 and over. The number of collective agreements allowing lower youth wages has dropped from 348 in 2019 to 283 today. But the legal option remains.
What the EU directive actually says
The EU minimum wage directive, adopted in October 2022, aims to ensure minimum wages allow workers to lead a decent life. It requires member states to limit the use of variations and deductions from minimum wages.
The directive had to be written into national law by November 15, 2024. The Netherlands was among the last EU countries to do so, only passing its implementation law this week.
While the directive does not force countries to eliminate all variations or deductions, it does impose rules on how these exceptions work. FNV believes both the youth minimum wage and the housing deductions fall outside what the directive allows.
What happens next
If the European Commission agrees with FNV's complaint, it can launch what is called an infringement procedure against the Netherlands. This process can ultimately force a country to change its laws to comply with EU rules.
FNV plans to provide the Commission with detailed information about how Dutch law works in practice, particularly regarding the treatment of migrant workers whose housing costs eat into their minimum wage.
The political situation in the Netherlands is unstable. Recent elections punished the governing coalition parties, with the far-right PVV dropping from 37 seats to a projected 26, and the centrist NSC likely losing all 19 of its remaining seats. A new government will eventually need to deal with whatever the Commission decides.
The bigger picture
The dispute touches on larger questions about who benefits from low-wage work in wealthy countries. The Netherlands relies heavily on migrant workers for agriculture, food processing, distribution, and construction. Estimates suggest between 800,000 and 1.7 million migrant workers are in the country, though the exact number is unclear.
For these workers, the combination of low wages and employer-controlled housing can create precarious situations. Dutch law does prohibit deductions that would reduce net pay below the minimum wage, but many workers are not informed of this rule.
FNV's move to involve the EU reflects frustration with slow progress at the national level. "Every day, people are being exploited," said Roemer, author of the 2020 report. "It is regrettable that the execution of the recommendations has been so slow."
Whether the European Commission will agree that Dutch law falls short of EU standards remains to be seen. But for now, FNV is betting that Brussels will take worker protection more seriously than The Hague has.
