Dutch workers have high hopes for salary Santa

14th December 2005, Comments 0 comments

14 December 2005, AMSTERDAM — Employees are much more hopeful of getting a pay rise for 2006 than was the case this year, according to Dutch temporary employment agency Randstad.

14 December 2005

AMSTERDAM — Employees are much more hopeful of getting a pay rise for 2006 than was the case this year, according to Dutch temporary employment agency Randstad.

Some 73 percent of the 450 employees questioned by Randstad said they expected their wages would be increased by the rate of inflation or more in the coming salary negotiations. Last year, 63 percent of workers expected to get a pay rise for 2005.

The number of pessimists, who believed their wages will not increase, is down from 36 percent to 27 percent now, Randstad said on Wednesday.

The survey found a sharp decline in the willingness among the working public to see a continuation of the policy of freezing wages. Almost half of those questioned expressed "less understanding" for the notion of not getting a pay rise, compared with almost two thirds understanding for wage moderation last year.

"Employees evidently have higher expectations, probably on the basis of the somewhat improving economy," Randstad said.

The research also underlined that more and more workers would prefer to receive a cash amount instead of the traditional kerstpakket (Christmas present) from their employers.

"Almost half of the working public would prefer to exchange the kerstpakket for money, compared with 41 percent in 2004. One fifth of all employees in the Netherlands think that the kerstpakket is totally unimportant," Randstad said.

Meanwhile, many people are unsure of the net salary amount they will receive in January 2006 due to far-reaching changes to the healthcare system, social security and tax in the Netherlands.

The Social Affairs Ministry has to date dismissed all attempts to calculate how much average employees will "get into their hands each month" as deficient.

LogicaCMG became the third major payroll specialist company to try and come up with a realistic salary calculator for 2006.

The Amstelveen-based firm, which prepares the salary slips for 1.3 million workers in the Netherlands, sketched a many-sided image.

Middle-income earners, receiving salaries of EUR 2,750 to EUR 4,500 before tax (bruto in Dutch) a month, will see a 0.5 percent increase in spending power. This amounts to between EUR 7.56 and EUR 11.46 extra a month  after tax (net)  compared with January 2005.

People on lower incomes will actually experience a drop in purchasing power of between 16 cents and EUR 17.06 net a month. Those paid more than middle-income earners will have between EUR 2.21 and EUR 4.68 more to spend every month.

The main negative impact on wages will result from paying premiums for supplementary health insurance, with people on lower incomes having to pay more for the new basic health insurance package than they paid for the public ziekenfonds system. 

[Copyright Expatica News + ANP 2005]

Subject: Dutch news

0 Comments To This Article