Dutch wages rise by 4.5% in early 2026, but inflation eats into gains
Dutch workers saw a 4.5% increase in collective bargaining agreement (CAO) wages in the first quarter of 2026, but inflation means real wage growth is just 2.0%. The private sector led the rise, while public sector wages lagged behind.
| Key Data Point | Value |
|---|---|
| CAO wage increase (Q1 2026) | 4.5% |
| Real wage increase (inflation-adjusted) | 2.0% |
| Private sector increase | 4.9% |
| Public sector increase | 3.4% |
| Highest sector increase | Rental & real estate trade: 8.1% |
| Lowest sector increase | Water supply & waste: 1.7% |
| Contractual labor costs rise | 4.4% |
| CAOs covered in statistics | 93% |
Statistics Netherlands (CBS) monitors wage developments and labor costs to provide insights into economic trends. These figures help policymakers, employers, and employees understand shifts in purchasing power and labor market dynamics.
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Collective bargaining agreement wages up 4.5 percent in first quarter
In the first quarter of 2026, collective bargaining agreement (CAO) wages (hourly wages including special bonuses) were 4.5 percent higher than in the same quarter a year earlier. At that time, the CAO wage increase was still 5.4 percent. Since the high CAO wage increase in the third quarter of 2024 (6.8 percent), the CAO wage trend has been declining. Adjusted for inflation, wages in the first quarter were 2.0 percent higher. This is reported by Statistics Netherlands (CBS) based on new figures.
Largest increase in private sector
In the private sector, CAO wages increased the most, by 4.9 percent. A year earlier, wages in this sector also rose the most. In the public sector, wages increased the least, as in the previous year: 3.4 percent. In subsidized institutions, the increase was 4.1 percent.
Largest wage increase in rental and real estate trade
In the first quarter of 2026, CAO wages in the rental and real estate trade (housing corporations) sector saw the largest increase: 8.1 percent. In the first quarter of 2025, wages in this sector remained unchanged. The construction industry also saw a significant increase, with wages rising by 7.2 percent. The water supply and waste management sector had the lowest wage increase: 1.7 percent. With a wage increase of 3.0 percent, the public administration sector also belongs to those with the lowest wage growth.
Contractual labor costs development almost identical to CAO wages
The contractual labor costs—CAO wages plus employer contributions (pension and insurance for disability, unemployment, and healthcare)—increased by 4.4 percent in the first quarter of 2026. This is almost identical to the development of CAO wages. In 2026, the employer’s healthcare insurance contribution (Zvw) has decreased, while the WHK (Work Resumption Fund) premium has increased. The WHK premium consists of the average WGA (Partial Disability Work Resumption) and sickness benefit premiums.
Real wage increase of 2.0 percent
The real CAO wage development, adjusted for inflation, stood at 2.0 percent in the first quarter of 2026. The real wage development has been positive for ten consecutive quarters.
The provisional figures for the first quarter of 2026 are based on 93 percent of the CAOs included in the statistics. Three-quarters of employees fall under a CAO.
Sources
- StatLine - CAO wages