The minimum wage will rise 0.29 per cent from 1 January 2021. This is considerably less than the 1.6 per cent from 1 July 2020.
The minimum wage is determined on the basis of the Minimum Wage and Minimum Holiday Allowance Act (WML). The starting point of this law is that the general welfare development should, if possible, also be reflected in the incomes of minimum wage workers and benefit recipients.
Linking minimum wage to contract wage development
This principle is laid down in the main rule of section 14 of the WML, which assumes that the minimum wage and social benefits are linked to the average contractual wage development. Deviation from the main rule is possible if there is excessive wage development or volume development in the social security schemes. The Ministry of Social Affairs and Employment argues that, based on the CPB's Macro Economic Outlook (MEV) 2021, this will not be the case in 2021.
Minimum wage and minimum youth wage
| Age | Staffing | Per month | Per week | Per day |
|---|---|---|---|---|
| 21 years and over | 100% | 1684,80 | 388,80 | 77,76 |
| 20 years | 80% | 1347,85 | 311,05 | 62,21 |
| 19 years | 60% | 1010,90 | 233,30 | 46,66 |
| 18 years | 50% | 842,40 | 194,40 | 38,88 |
| 17 years | 39,5% | 665,50 | 153,60 | 30,72 |
| 16 years | 34,5% | 581,25 | 134,15 | 26,83 |
| 15 years | 30% | 505,45 | 116,65 | 23,33 |
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