Workers to see net wages rise next year due to favorable tax measures

Workers’ net wages will increase next year due to favorable tax measures. This is according to HR and payroll services provider ADP, based on calculations. An employee with an average gross salary of €3,704 per month will see a net increase of €26 in January.

Economics Editors
December 16, 2025, 9:38 AM
Last update: 10:02 AM

According to ADP, people earning the minimum wage will see the greatest gains. “This is because the calculations also include indexation, or the increase in the gross minimum wage as of January 1, 2026,” the payslip processor explains.

A slightly lower tax rate will apply in the first tax bracket. The threshold will also increase by €442 to €38,883. In the second bracket, the tax rate will increase, but the threshold will also increase by €1,609. “This means you will pay slightly more tax on incomes of €38,883 or more in 2026, but it will take longer before you fall into the third bracket with the top rate of 49.50 percent,” says Karin Stam, an expert in legislation and regulations at ADP.

Minimum wage earners who work 40 hours per week will see a monthly increase of €51. People earning twice the modal income (€7,407 gross) will receive a monthly increase of €37. For those earning three times the modal income, the net increase is €16.

Part-time workers and young people still see progress
Employees earning between €1,000 and €2,000 gross per month, such as part-time workers and young people earning the minimum youth wage, still saw their income decline this year, and this was expected to continue in 2026 based on the Budget Day plans. However, due to a correction, they will still see their income improve in the new year, ADP reports. Despite this, they will still have less net income in 2026 than in 2024.

Retirees will also receive slightly more pension. This increase is mainly due to a decrease in the premium for the Health Insurance Act (Zvw). The slight decrease in the tax rate in the first bracket also plays a role.

After Budget Day, HR service provider Youforce also calculated that working Dutch people with a modal income will see their net income increase by a few tens of euros next year. According to Youforce’s calculations, people earning the minimum wage will also have slightly more net income next year.