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Netherlands - Minimum Wages - 2009


LAST UPDATE

1 July 2009

SOURCES


Name of Act

Minimum Wage and Minimum Leave Allowance Act,
(Wet Minimumloon en Minimumvakantiebijslag), No. 657 of 1968 as amended to 7 May 2007.

Name of Act

Industrial Organization Act,
(Wet op de Bedrijfsorganisatie), 27 January 1950, as in force 9 June 2009.

Name of Act

Act to provide for the declaration of provisions of collective agreements as generally binding or not binding,
(Wet up he algemeen verbindend en het onverbindend verklaren van bepalingen van collectieve arbeidsovereenkomsten), of 25 May 1937, as amended to 25 October 1989.

Name of Act

Decree concerning minimum wages for youth workers,
(Besluit Minimumjeugdloonregeling), 29 June 1983, as in force 9 June 2009.

Name of Act

Decree on the adjustment of the minimum wages per 1 July 2008,
(Regeling aanpassing wettelijk minimumloon), 20 May 2008.

Name of Act

Decree on the adjustment of the minimum wage per 1 July 2009,
(Regeling aanpassing wettelijk minimumloon), 28 May 2009.

Name of Act

Collective Agreements Act - Act of 24 December 1927 to issue detailed regulations respecting collective agreements (Wet van 24 december 1927, houdende nadere regeling van de Collectieve Arbeidsovereenkomst), as amended to 17 July 2009

Name of Act

Civil Code (Burgerlijk Wetboek), Book 7, 1 January 1999, as amended and in force 9 June 2009

Other source used

CEACR: Individual Direct Request concerning Minimum Wage Fixing Convention, 1970 (No. 131) Netherlands (ratification: 1973) Submitted: 2008.

LEGAL DEFINITIONS


Employee/worker

Means any person who is a party to an employment relationship.
Minimum Wage and Minimum Leave Allowance Act §2

Employer

Means any person with whom a worker is a party to an employment relationship.
Minimum Wage and Minimum Leave Allowance Act §2

MINIMUM WAGE FIXING


Procedure


Government decides alone

Minimum wage increases are automatically indexed to estimated increases in average negotiated wage rates in both the public and private sectors in the current year and revised accordingly by the Ministry of Social Affairs and Employment. However, the minimum wage rate may be frozen at its current level in the following two situations:
1) if the average wage rise is considered too high, and as a result an increase of unemployment is expected, or
2) if the increase in the amount of social welfare benefits, which are based on minimum wage rates, increases to such an extent that a significant increase in premiums or taxes is necessary.
Minimum Wage and Minimum Leave Allowance Act §14

Minimum wage set through decentralized collective bargaining

Wages may also be determined in collective agreements on the condition that they are higher than the statutory minimum wage. The Minister of Social Affairs and Public Health, at the request of the social partners, may extend collective agreements to all enterprises within a sector of the economy on the condition that the existing agreement covers the majority of the workers in the sector concerned.
Collective Agreements Act see §1
Act to provide for the declaration of provisions of collective agreements as generally binding or not binding

Criteria


Level of wages and incomes in the country

Yes
Minimum Wage and Minimum Leave Allowance Act §14

Social security benefits

Yes
Minimum Wage and Minimum Leave Allowance Act §14

Level of employment

Yes
Minimum Wage and Minimum Leave Allowance Act §14

Coverage


Scope

The national minimum wage applies to all employees of 23 years of age and older. Separate minimum wage rates have been established for youth workers.
Minimum Wage and Minimum Leave Allowance Act §7

Specific minimum wage rates


» Specific minimum wage by occupation

No

» Specific minimum wage by sector

No

» Specific minimum wage by region

No

» Minimum wage levels for specific categories of workers


» Youth

Youth workers between 15 and 22 years of age receive a percentage of the adult rate. This rate varies from 30% of the minimum wage for workers of 15 years of age, to 85% of the minimum wage for workers of 22 years of age.
Decree concerning minimum wages for youth workers §2

» Disabled

If a worker’s output is reduced as a result of sickness or infirmity, the Minister of Social Affairs and Public Health may determine a lower minimum wage rate upon application by the employer or worker concerned.
Minimum Wage and Minimum Leave Allowance Act §13

» Other categories

Part time workers are entitled to a pro-rata minimum wage.
Minimum Wage and Minimum Leave Allowance Act §12(1)

Level


Minimum wage level(s) in national currency

EUR 1,356.60 per month (1 July – 31 December 2008)
EUR 1,398.60 per month (as of 1 July 2009)
Decree on the adjustment of the minimum wages per 1 July 2008 §1
Decree on the adjustment of the minimum wage per 1 July 2009 §1

Last minimum wage update

1 July 2009
Decree on the adjustment of the minimum wage per 1 July 2009

In-kind allowances

Wages should normally be paid in cash, however, the Minister of Social Affairs and Public Health may stipulate that in kind allowances be regarded as a wage for certain workers. The cash value of such allowances shall be fixed by the Minister in the Regulation.
Minimum Wage and Minimum Leave Allowance Act §6(3)

Rate of payment


» Daily

Yes.
Decree on the adjustment of the minimum wage per 1 July 2009 §1

» Weekly

Yes - The daily minimum wage is 3/65 of the monthly minimum wage.
Minimum Wage and Minimum Leave Allowance Act §14(10)
Decree on the adjustment of the minimum wage per 1 July 2009 §1

» Monthly

Yes - The weekly minimum wage is 3/13 of the monthly minimum wage.
Minimum Wage and Minimum Leave Allowance Act §14(10)
Collective Agreements Act §1

Scheduled frequency of adjustment

The minimum wage rate is examined twice a year, on January 1 and July 1.
Minimum Wage and Minimum Leave Allowance Act §14

Enforcement mechanisms


Fines in national currency for non-respect of legislation

The maximum fine for non-respect of the minimum wage is 6.700,- EUR. If within a period of 24 months it emerges again that the employer is failing to comply with obligations from the Minimum Wage Act, the fine to be imposed will be increased by 50%. The total fine could then be more than € 6.700,– per employee.
Minimum Wage and Minimum Leave Allowance Act §18b), g), n)

Other penalties

A penalty payment (order to pay the correct minimum wage) and a fine can be imposed at the same time.
Minimum Wage and Minimum Leave Allowance Act §18b)

Results generated on: 20th August 2014 at 06:52:56.
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