Purchasing power among Dutch consumers rose by 3.6% last year, the biggest increase in more than 20 years, according to Statistics Netherlands (CBS).
This growth in purchasing power was largely driven by a major collective bargaining agreement wage increase (of 6.8%) that was introduced during the year, however this was partly offset by moderate inflation of 3.1%.
The average purchasing power of employee households rose by 5.3%, with workers benefitting from a renewed increase in the labour tax credit.
‘Furthermore, employees increased their purchasing power themselves, for example, by working more hours or changing to jobs with higher pay,’ Statistics Netherlands said. ‘Conversely, factors such as (temporary) job loss or reduced working hours led to a decrease in purchasing power for a quarter of people in employee households.’
The increase in purchasing power among self-employed individuals was 3.1% lower than that of employees, however.
Welfare-assisted households
Among households that depend on welfare assistance, meanwhile, there was little improvement in purchasing power (+0.2%), with the removal of the temporary energy allowance, which had provided low-income households with financial relief, having a negative effect.
Increases in the minimum wage, social assistance benefits and housing allowances prevented an overall decline in the purchasing power of welfare-assisted houses.
Elsewhere, retirees saw their purchasing power rise by 1.8% on average, with this segment seeing an increase in purchasing power after three consecutive years of decline.
‘Those with supplementary pensions benefited from pension indexation, in addition to the increase in the state pension,’ Statistics Netherlands said.
Household type
Purchasing power developments also differed depending on household type. Couples with children recorded the largest increase, at 5.6% on average, supported by higher child benefits and adjustments to child-related allowances.
Single-parent households saw an average increase of 4.8%, while couples without children gained 2.6%, the data showed. For single-person households, the increase was more modest, standing at 2.0%. Read more here.
