The coalition agreement states that the minimum wage will increase from 2024. The cabinet has now decided to bring forward that increase by one year. The minimum wage is now 1725 euros gross per month for someone aged 21 or older.
Three steps
According to the first plans, the minimum wage should increase by 7.5 percent in two steps. That will be three steps of 7.5 percent from next year.
In the first step, the minimum wage rises in line with the increase in the state pension. Whether this also applies to the next two steps is still unclear.
Spring note
Furthermore, the agreements that the coalition previously made about the Spring Memorandum remain largely unchanged. Defense spending is going up sharply, to meet the NATO standard of two percent in a few years. The cabinet previously announced that 60,000 savers who have paid too much tax will receive compensation.
Companies pay a large part of the bill. This will make them more likely to pay the high corporate income tax rate. This will already apply from a profit of 200,000 euros, instead of the current 395,000 euros. And there are plans to give more weight to directors-major shareholders.
Expat arrangement
The expat scheme will also be cut back. This scheme gives foreign employees with specific expertise who come to work here a tax advantage: they do not pay tax on a maximum of 30 percent of their income. From now on, this scheme only applies up to an income of a maximum of 216,000 euros, the so-called Balkenende norm.
The billion-dollar funds that the government has set up to adjust problems related to climate and nitrogen are also affected. Reportedly, these funds are not indexed, which saves a lot of money with the current inflation.
Last week, Prime Minister Rutte and Finance Minister Kaag visited all opposition parties, a tour that ended in disappointment. The opposition thought it could do business and came up with lofty wishes, which the cabinet will not grant.
“Nevertheless, the cabinet hopes that the Spring Memorandum contains enough good things to convince a number of opposition parties,” says political reporter Roel Schreinemachers.
Support is needed because the cabinet does not have a majority in the Senate. “They are betting that it will be difficult for a number of parties to vote down this Spring Memorandum because then explicit wishes such as linking the state pension to the minimum wage will not be implemented.”