The overall incidental wage increase in the Netherlands was 0.1 percent in 2002. This is considerably lower than in the preceding years. In commercial services the incidental development was even negative. Incidental wage includes dividend payments, allowances and bonuses.
Incidental development in annual earnings
Collectively agreed wages rise faster than earnings
Annual earnings of employees rose by 3.0 percent in 2002, while the collectively agreed wages 3.7 percent. The difference between the two increases was therefore -0.7 percent. An important part of this difference can be explained by changes in the composition of the employee population. Many part-timers entered the labour force in 2002. This had a negative effect on earnings, as part-timers have lower annual earnings on average than full-time workers.
Lowest incidental wage increase for years
If the changes in the composition of the employee population are not taken into account, the incidental wage increase in 2002 would have been 0.1 percent. This points to a limited increase of payments not included in collective agreements, such as bonuses and dividends. The incidental wage increase was smaller in 2002 than in preceding years.
Incidental wage decrease commercial services
In the commercial services sector the development in incidental wages was negative in 2002, namely -0.6 percent. In non-commercial services the increase was relatively high at 1.0 percent.
Incidental development in annual earnings by sector, 2002
Highest increase in health care and welfare
The high incidental wage increase in non-commercial services was mainly caused by the health care and welfare sector. After three years of decreases, there was an incidental increase in wages again in this sector in 2002. This was caused by the sharp increase in the number of employees in the sector since 2001. New workers receive relatively many salary increases, while staff already working somewhere have often reached their maximum salary levels.
Incidental development in annual earnings by branch of industry
Within commercial services, business services account for the largest part of the incidental wage decrease. The wage development in business services was negative for the first time in seven years. Fewer bonuses were paid than in preceding years because of the disappointing results in 2002.