Indexation of Minimum Wage and Automatic Adjustment of Year-End Bonus in Amsterdam

In Amsterdam, the minimum wage is indexed annually pursuant to Article 5 of the Minimum Wage and Minimum Holiday Allowance Act (Wml), based on collective labour agreement (CLA) developments plus an additional 0.5% (Decree of 20 December 2023). For 2024, the minimum wage amounts to €13.27 per hour, including a pro rata year-end bonus. The government publishes this figure no later than 15 December. Employers in Amsterdam, such as those in the hospitality sector along the canals or retail businesses on Kalverstraat, must apply this adjustment automatically; failure to do so is punishable by fines of up to €4,000 per violation. Historically, the wage increased by 7.01% in 2023, resulting in an additional €200 per year for Amsterdam residents. An exception applies to interns at local institutions. Use the central government’s tool for calculations. In cases of inflation spikes, such as those recently experienced in the Randstad region, interim adjustments may follow. The Amsterdam District Court ruled in ECLI:NL:RBAMS:2023:HI8901 that indexation does not have retroactive effect, a crucial precedent for local entrepreneurs. Amsterdam-based businesses should update contracts and payslips to avoid mass claims via the Legal Counter. Future plans aim to link the minimum wage to the cost-of-living index, aligning with Amsterdam’s high living costs. Consult the municipal website for sector-specific CLAs in the city.