Working people in the Netherlands are expected to see slightly higher net pay from January 2026, according to new calculations by HR and payroll services firm ADP. The gains come mainly from changes in income tax brackets and an increase in the gross minimum wage.
Small net gains across income groups
ADP’s example shows that an employee with a modal gross salary of €3,704 per month will take home about €26 more net per month in 2026. Someone on twice the modal income (€7,407 gross) will gain around €37 net per month, while a worker on three times modal income will see a smaller increase of about €16 net.
Minimum-wage workers benefit the most in euros. A full-time employee on the statutory minimum wage working 40 hours a week will receive around €51 extra net per month, ADP said.
ADP also calculated that people earning between €1,000 and €2,000 gross per month, such as many part-timers and young workers, will see their net pay rise compared to 2025, after earlier forecasts had suggested further loss of purchasing power. Even so, ADP notes that these groups will still have less net income in 2026 than they had in 2024.
How the 2026 tax changes work
The expected net gains are linked to the Tax Plan 2026, presented on Prinsjesdag. In that plan:
The tax rate in the first income tax bracket will be slightly reduced.
The upper threshold of the first bracket will rise to €38,883.
The second bracket will also have a higher threshold (up to about €79,137), even though its tax rate increases.
As ADP expert Karin Stam explains, this means people will pay a bit more tax on income above €38,883, but it will take longer before they fall into the highest 49.5% bracket, which softens the impact for many employees.
The government has also decided not to fully adjust tax brackets and credits for inflation in order to help pay for other policy choices, such as reversing a planned VAT increase on culture, media and sport. This “under-indexation” slightly pulls more income into higher tax bands, but for 2026 the net effect for many workers is still positive when combined with wage indexation.
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Minimum wage and low earners
Minimum-wage workers gain both from the tax changes and from an indexed rise in the gross minimum wage on 1 January 2026. External calculations have estimated that minimum wage employees may see around €10–€20 extra net per month, depending on hours worked, while ADP’s figure of €51 for a full-time worker reflects a combination of higher gross pay and lower tax.
These increases are modest, but they do help to partly offset higher living costs in recent years. At the same time, employer organisations have warned that many companies will try to limit wage rises in 2026, meaning that a significant part of any improvement in take-home pay will come from the tax system rather than from big salary hikes.
Pensioners also see a small boost
ADP’s calculations show that pensioners should also receive a slight increase in net pension payments next year. This is mainly due to a lower premium for the Health Insurance Act (Zvw) contribution, combined with the small cut in the first income tax bracket rate.
What this means for 2026
For most Dutch workers, 2026 will bring small but noticeable improvements in net income rather than dramatic jumps. Minimum-wage and low-income employees will see the largest relative gains, while higher earners receive smaller increases in euros.
Whether people actually feel better off will still depend on inflation, rent, energy bills and other costs. But compared to earlier forecasts that suggested further loss of purchasing power for low and middle-income groups, ADP’s updated figures indicate that most workers will at least keep a little more of their salary in their pocket next year.
