The government has taken a significant step to address growing concern among youth about the minimum wage. In the Spring Memorandum, the government has set aside additional funds to significantly raise youth wages. This decision follows ongoing efforts and pressure from the FNV union. As a result, young employees will receive a structured and consistent pay increase. This change will result in an increase of 25% in minimum wages for 18- and 19-year-olds compared to the current pay system, while 20-year-olds will see a 9.4% increase. The new changes will also be reflected in the wages of 16- and 17-year-olds.
In the Netherlands, the youth minimum wage system results in younger employees earning significantly less than older workers, purely based on age. This age-based pay gap is becoming increasingly outdated, especially compared to other European countries. For example, in Germany and France, 18-year-olds are entitled to the full adult minimum wage from the start. According to FNV, countries such as Belgium and Luxembourg have a completely different, separate minimum wage system for young workers. They are earning far higher percentages of the traditional minimum wage than the Dutch system. These countries have moved toward fairer wage practices for young workers, while the Netherlands still lags behind in ensuring equal pay for equal work.
In many supermarkets, hotels, restaurants and cafés, it’s common to find mostly young workers behind the counter. This trend is largely driven by youth minimum wage policies, which allow businesses to pay lower wages to younger employees. As a result, many employers now favour hiring people under 18 to reduce labour costs, even though these young workers often perform the same duties as older staff. Furthermore, as most young workers are on temporary contracts, they are often let go once they get ‘too expensive’, leading to job insecurity. Over time, this cost-saving tactic is taking a toll on young adults, leaving many of them in a fragile financial state. According to a study, 45% of the people aged between 18 to 25 are financially unhealthy.
Advocates for equal pay emphasize that compensation should be based on the nature and quality of the work rather than age. They argue that a more equitable wage system would not only improve morale among young workers but also promote fairness and inclusivity in the workplace. Furthermore, the change was definitely necessary, as the expenses for housing, food and education have increased significantly in the recent years.
It has often been tried to change the Dutch system before, but nothing really worked. Things started to shift when FNV union kicked off a big campaign to raise awareness. This caught the attention of lawmakers, and soon after, real changes were made. The recent raise is a positive development, yet it marks just the beginning. The ultimate objective remains clear: to eliminate the youth wage entirely for people aged 18 and over. There’s still much work ahead to achieve true wage equality.
FNV is committed to keeping the momentum alive by engaging directly with its supporters and listening to the voices of young people. Its youth branch, FNV Young and United, organizes meetings and visits supermarkets where many young individuals work, striving to ensure that from the age of 18 onwards, every employee is recognized as a full-fledged team member, receiving fair and equal pay. Their dedication reflects a strong effort to create a more just and inclusive workplace for the younger generation.
The demand for equal pay among young workers in the Netherlands brings attention to the important issue of fairness at work. As the job market changes, it’s important to think about whether current pay rules truly value the work done by everyone, no matter their age. Ongoing discussions and possible changes in policy could help create a fairer system where all workers are paid appropriately for their efforts.
Written by Parul Sachdeva