With effect from 1 January 2024, there is no statutory minimum monthpay more. The government has decided to work only with a statutory minimum hourwage. This change has been made because currently different minimum hourly wages apply per working hours. The aforementioned change may lead to a sharp increase in gross wages and hence employer lettres.
Current vs new statutory minimum wage
The table below gives a simple picture of the increase. Especially in industries where the standard working week is 40 hours, the minimum hourly wage rises sharply. This is because the new statutory minimum hourly wage is set on the basis of a 36-hour work week.
No more minimum monthly wage in employment contract?
In a nutshell, there is no longer a minimum monthly wage set by the government. In employment contracts, you can choose to either include the statutory minimum hourly wage and keep track of all hours per month (after all, not every month has the same number of workable hours), or you calculate the minimum monthly wage per calendar year. You can calculate the latter option using the following formula (which you have to repeat every calendar year due to any change in the workable hours per calendar year):
Formula: (number of working hours calendar year / 12) x minimum hourly wage
In conclusion
From 2024, the pay slip must show the applicable statutory minimum wage per hour. This is partly for transparency and partly to promote compliance.
The statutory minimum hourly wage is re-indexed each year on 1 January and 1 July.
For workers under 21, fixed minimum hourly youth wages will apply from 1 January 2024: Amounts minimum wage 2024 | Minimum wage | Rijksoverheid.nl