Wages continue to rise despite moderation drive
30 August 2005, AMSTERDAM — Despite the government's attempts to persuade companies to adapt pay restraint in the Netherlands wages have increased this year, a new survey has found.
30 August 2005
AMSTERDAM — Despite the government's attempts to persuade companies to adapt pay restraint in the Netherlands wages have increased this year, a new survey has found.
The Beloningsmonitor (wage monitor), published on Tuesday, says that actual gross wages rose by an average of 2.05 percent in 2005 when compared with last year.
The financial services sector in the Netherlands showed the strongest growth in wages, with a rise of 2.7 percent. The industrial sector experienced the lowest growth, just 1.6 percent.
Executives did best earning a wage increase of 2.1 percent compared with 1.9 percent for "operational staff". Men also earn an average of 25 percent more than women in the same job.
The government had tried to persuade businesses to stick to "zero percent wage rises" for this year.
Wages will rise by a further 1.96 percent next year, the monitor predicted.
The Beloningsmonitor is compiled on behalf of the Dutch institute of wage statistics (NIB) by wage administration company ADP and Mercer Human Resource Consulting.
The wage index is based on information from 300 small and medium-sized companies covering the range of business sectors in the Netherlands.
The survey confirmed that 81 percent of the firms decide pay rises on an individual basis.
A person's salary is partly dictated not only the sector but also the size of the company or organisation.
The survey found a personnel manager within an organisation with 50 to 100 employees could expect to earn EUR 54,600 annually, while a personnel manager with a company of 500 to 1,000 staff earns an average of EUR 61,800.
"It is notable that the wages paid by small firms of up to 50 employees are higher again," the Beloningsmonitor said.
More than 65 percent of the companies taking part in the study have a variable bonus system, but not everyone within the firm makes use of the right to such a bonus.
"In practice 59.7 percent of all directors and 57.7 percent of middle management receive a variable bonus. About 25 percent of the companies have a profit sharing scheme," the report said.
[Copyright Expatica News 2005]
Subject: Dutch news + wages in the Netherlands