Most employees in the Netherlands will have more take-home pay in 2025, according to calculations by payroll administrator ADP. A worker earning the average gross salary of €3,588 per month will see an increase of €56 in their monthly net income.
The increase is primarily due to a reduction in income tax rates for middle incomes. The tax rate in the first bracket will decrease from 36.97% to 35.82%. Pensioners will also benefit, with those receiving a supplementary pension of €1,000 per month paying €12 less in taxes.
However, workers with lower incomes will see a decrease in their take-home pay. Individuals earning between €1,000 and €2,000 gross per month will pay approximately €30 more in taxes each month. This is partly because the maximum general tax credit is being reduced, resulting in higher taxes for part-time workers and others with low incomes.
Economists predict that in 2025, wage increases will outpace inflation, leading to a rise in real wages. Wages in new collective labor agreements have increased significantly, averaging 5% according to employers' association AWVN. This means that people will have more disposable income to spend or save.
Source: NOS News