In a recent statement, employer organisations and business groups voiced concern over continuing high wage growth, warning that many companies simply cannot afford large pay rises in 2026. Inflation remains elevated, energy and operational costs are high, and rising labour expenses are squeezing margins, thus making employers more cautious about granting further increases.
According to a recent labour-market update, the pace of wage growth in the Netherlands is already slowing. While 2023 and 2024 saw strong salary increases, the latest data show a downward trend: many businesses say they cannot pass future cost pressures on to customers, and instead need to limit payroll growth.
What recent wage trends show
In the first half of 2025, collective bargaining agreements (CAOs) achieved an average 4.1% wage increase. But unions feel this is still insufficient, while many employers say demand for 6–7% hikes, as sometimes proposed, is unrealistic.
At the same time, the legal minimum wage has increased: as of 1 July 2025, the hourly minimum wage for workers 21 and older is set at €14.40.
Nevertheless, for many employees, especially those earning near the minimum, these statutory increases may not translate into higher real income, because of inflation and rising living costs.
Photo Credits: Jakub Zerdzicki/Pexels
Why employers are pushing back
Employer groups such as AWVN argue that continued high wage growth will erode the Netherlands’ competitiveness, especially in sectors exposed to international competition or operating on tight margins.
Some companies are already signalling that they’ll freeze salaries or offer only minimal raises in 2026. This could hit millions, even though many employees had expected wage increases after years of inflation and rising costs.
What this means for workers
For many workers, especially mid-income or near-minimum wage earners, the coming year may bring little to no pay increase beyond the legal minimum. Even for those with CAO contracts, a 4–5% raise may not keep pace with actual cost-of-living increases.
Also, sectors without a collective bargaining agreement have no legal obligation to raise wages. Employers there may choose to maintain current pay levels, or only adjust minimally.
With inflation still elevated and business costs high, many employers say this is not the moment for generous wage hikes. Instead, they call for wage restraint to protect jobs, competitiveness and business survival.
At the same time, unions continue to push for raises to match inflation and living costs, which creates a potential conflict: one that could lead to tense negotiations and pressure on smaller employers.
Whether salaries remain stable or start rising again in 2026 will depend heavily on: economic conditions (energy costs, demand, inflation), government policy (taxes, regulation), and how willing employers and unions are to compromise.
