What Is the Minimum Salary for Employees in the Netherlands in 2027?

You have set up your company in the Netherlands and found your first employee. Now, you need to know how much you must pay them. What is the minimum salary you can legally offer, and how much will it cost your business?

From 1 January 2027, the minimum salary in the Netherlands will be €15.29 per hour before tax for employees aged 21 and over. You must also pay an extra 8% as holiday allowance.

For a full-time employee, this comes to around €2,385 per month for a 36-hour working week and €2,650 for a 40-hour working week. These amounts are before tax and do not include the 8% holiday allowance. So, your total wage cost will be higher. 

If you are hiring in the Netherlands for the first time, you may have a few questions. Is the minimum wage based on hours or a fixed monthly salary? Does the rate change during the year? Do younger employees get the same pay? What happens if you pay less than the legal minimum?

These are important questions because a small mistake can lead to extra costs for your business. The minimum wage is based on working hours, and the rate changes twice a year, on 1 January and 1 July. Employees under 21 also have different minimum wage rates. In 2027, the rates for 19- and 20-year-olds will increase.    

In this guide, we explain the 2027 minimum wage rates, show how to calculate monthly wages, and cover the common mistakes employers should avoid. This will help you understand how much to pay your first employee and plan your wage costs correctly.

Minimum Wage in the Netherlands in 2027

The minimum wage in the Netherlands changes twice a year, not just once. It was €14.71 per hour in January 2026 and increased to €14.99 in July 2026. From 1 January 2027, it will increase again to €15.29 per hour. 

This is an increase of €0.58 per hour in just one year. For an employee working 40 hours a week, this means around €1,200 more in wages per year. If an employer has not updated their employee's salary since the start of 2026, they may now be paying below the legal minimum wage. 

What Is the Dutch Minimum Hourly Wage in 2027?

The minimum hourly wage is the lowest amount an employer can legally pay an employee for one hour of work. In 2027, this amount is €15.29 per hour for employees aged 21 and over.

This is the gross wage, which means the amount before tax is deducted. The employee receives a lower amount after tax.

The Dutch government sets the minimum wage based on expected salary increases in job agreements across the country, known as CAOs. When wages in these agreements increase, the minimum wage is also adjusted. The government reviews the rate twice a year, on 1 January and 1 July.

These rules apply to every employer. Even if an employee agrees to a lower salary and signs a contract, the employer must still pay at least the legal minimum wage.

Why Does the Netherlands Use an Hourly Minimum Wage, Not a Monthly One?

Until 31 December 2023, the Netherlands had a fixed monthly minimum wage for full-time employees. Since 1 January 2024, the government has set the minimum wage per hour instead.

The reason is simple. Not every full-time employee works the same number of hours. Some work 36 hours a week, while others work 38 or 40 hours, depending on their industry and employment agreement. A fixed monthly minimum would not be fair to everyone. An hourly rate makes sure employees are paid fairly for the hours they work.

As an employer, you need to calculate the minimum monthly salary based on each employee's working hours. You can do this by multiplying the hourly minimum wage by the weekly working hours, then by 52, and dividing the result by 12. This gives you the minimum monthly salary you must pay.

Minimum Monthly Salary in the Netherlands in 2027

The minimum monthly salary depends on how many hours an employee works each week. Based on the hourly rate of €15.29, an employee working 20 hours a week will earn around €1,325 per month. For someone working 36 hours, it will be around €2,385. For 38 hours, it will be around €2,518, and for 40 hours, it will be around €2,650. These are estimated amounts before tax and do not include holiday allowance.

You must also pay an extra 8% holiday allowance on top of the salary. For an employee working 40 hours a week, this adds around €212 per month. mployers should also consider other expenses when estimating the international payroll processing cost of hiring employees in the Netherlands. 

Minimum Wage for Employees Under 21 in 2027

The full minimum wage in the Netherlands applies to employees aged 21 and above. Employees between 15 and 20 years old receive a lower minimum wage. The amount they earn depends on their age.

In 2027, the government plans to increase the minimum wage for most young workers. The biggest increases will be for 19- and 20-year-olds. The minimum wage for 19-year-olds will increase from 60% to 75% of the adult rate. For 20-year-olds, it will increase from 80% to 87.5%. The rate for 15-year-olds will stay at 30%.

Based on the adult minimum wage of €15.29 per hour, the estimated hourly rates for young workers in 2027 will be €13.38 for 20-year-olds, €11.47 for 19-year-olds, €9.56 for 18-year-olds, €7.65 for 17-year-olds, €6.12 for 16-year-olds and €4.59 for 15-year-olds. These amounts are calculated using the planned percentages.

However, these changes still need approval from parliament. Before setting wages for young employees, check the official Dutch government website for the final rates.

You should also check each employee's age regularly. When an employee moves into the next age group, their minimum hourly wage increases. For example, when a 19-year-old turns 20, you must increase their pay to meet the new minimum rate.

Netherlands Salary Requirements in 2027: What Employers Must Pay

As an employer in the Netherlands, you must follow a few basic rules when paying your employees. Beyond salary compliance, businesses also need proper systems for managing business operations after hiring in Europe. 

You must pay at least the legal minimum wage for every hour an employee works. This applies to full-time, part-time, and temporary employees. The hourly rate depends on the employee's age. Workers aged 21 and above receive the full minimum wage, while younger workers receive a lower rate. You must also pay an extra 8% holiday allowance on top of their wages.

Remember that the minimum wage is the lowest amount you can pay. Some industries have agreements that set higher minimum wages. If your business follows one of these agreements, you must pay the higher amount.

If you pay an employee less than the legal minimum, you must pay them the missing amount. If you have already made a payment mistake, speak to a qualified advisor to understand what you need to do.

How FirmNL Helps Employers Pay the Correct Minimum Wage in the Netherlands

Understanding the minimum wage rules is important, but making sure you follow them every month can be difficult, especially if your company is new to the Netherlands. FirmNL helps international businesses manage their payroll and pay employees correctly through its payroll services in the Netherlands.

FirmNL helps calculate employee wages based on their age and working hours. The team also includes the 8% holiday allowance and updates the payroll when the minimum wage changes in January or July. You can also get help with payroll administration, tax requirements and applying for the Dutch wage tax number needed to pay employees.

If your business does not yet have a company in the Netherlands, FirmNL can also help you hire employees legally through its international hiring service. The team explains each step in simple language, so you can understand your responsibilities and manage employee payments correctly.

Make Sure You Pay the Correct Minimum Salary in the Netherlands in 2027

Before the new minimum wage starts, take a few minutes to check your employee salaries. Check each employee's age, weekly working hours, and current hourly pay. Then compare these details with the 2027 minimum wage rates in this guide and on the official Dutch government website.  

If you are unsure about the rules or are planning to hire your first employee in the Netherlands, FirmNL can help. Book a free consultation to understand the requirements and make sure your payroll is set up correctly. It is better to check everything now than to fix payment mistakes later.

Frequently Asked Questions

Is the Dutch minimum wage monthly or hourly?

It is hourly. The Netherlands only sets a minimum for each hour worked, not a fixed amount per month. To find the monthly minimum for one employee, multiply €15.29 by their weekly hours, then by 52, then divide by 12.

Does the minimum wage change again in July 2027?

Very likely, yes. The Dutch government reviews the rate every January and July, so a new rate is expected from 1 July 2027. The new amount is usually announced shortly before, so check the official government site at that time. 

Does the minimum wage apply to part-time employees?

Yes. A part-time employee gets the same hourly minimum as a full-time one. The only difference is that they work fewer hours, so their monthly pay is lower.

Is holiday allowance included in the minimum wage?

No. Holiday allowance is paid on top of the wage, at 8% of the employee’s gross pay. It is a separate payment, not part of the €15.29.

What is the minimum wage for an 18-year-old in 2027?‍

An 18-year-old is paid 62.5% of the adult minimum, which is about €9.56 per hour. This is based on the planned youth rates, so check the final amount on the official government site before setting pay.

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