Purchasing power up by 1.2 percent in 2025, most pronounced among employees

Median purchasing power in the Netherlands increased by 1.2 percent in 2025. The increase in purchasing power was mainly driven by a 5.0 percent increase in negotiated wages. As a result, households with individual members employed saw the largest increase, while for pensioners and self-employed persons the average increase was limited, partly due to tax-related measures. This is according to new figures from Statistics Netherlands (CBS) on purchasing power of the Dutch population.

The figures in this report relate to changes in median purchasing power. Median means that half the population saw a smaller increase in purchasing power, while the other half saw a larger or equal increase. The extent of changes in purchasing power reflect the main source of income of a given household, such as earnings from employment, self-employment, a pension or benefit.

Rise in purchasing power most pronounced among employed persons

Median purchasing power among employee households increased by 2.2 percent in 2025. Over 6 in 10 of these households saw an improvement in their purchasing power, with the rise in wages being the main contributing factor. The 5.0 percent increase in collectively agreed wages was offset by inflation of 3.3 percent, bringing the real change in negotiated wages to 1.6 percent.

Those in employment can also gain purchasing power by working more hours or by changing to a job with higher pay. Conversely, losing a job or choosing to work fewer hours are among the possible reasons for a decline in purchasing power, which was the case for 4 in 10 of employee households.

Years of rising tax credits designed to provide financial support to workers and those on lower incomes came to an end in 2025. General tax credits were reduced and the tax credit for employed persons rose only slightly.

The change in purchasing power for self-employed persons was marginally positive in 2025. In addition to the adjustments to tax credits, the self-employed also faced a further reduction in the private business ownership allowance and the SME profit exemption. The data collection of changes in purchasing power among self-employed persons in 2025 is currently less complete than that for other groups. This means that the provisional figure may be subject to further adjustment at a later date.

Smaller increase in purchasing power among pensioners on higher incomes

7 in 10 people in households on income support saw their purchasing power increase by 1.3 percent in 2025. This was partly due to the rise in the minimum wage, to which social assistance benefit and state pension (AOW) payments are linked. Among pensioners, median purchasing power rose by 0.3 percent. However, for those with a supplementary pension, the gains from the increased state pension were offset by the indexation of benefits, which was lower than the rate of inflation.

As a result, pensioners with a relatively high supplementary pension in addition to the state pension, purchasing power did not increase, or increased only marginally. Pensioners in the highest decile groups saw a decline in their purchasing power. Compared with people in work, pensioners have more limited options to improve their purchasing power. This is highly dependent on the indexation of the state pension and supplementary pensions, as well as on tax measures.