ARTICLE · 05 MAY 2011

Salary Freeze In 2011 And 2012: Wage Increases Now Illegal

NautaDutilh

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The socialist and liberal unions recently rejected the 2011-2012 draft interprofessional agreement (IPA), a cross-industry framework agreement concluded every two years that covers a number of important employment-related issues, such as the applicable percentage by which wages can be increased.

NetherlandsEmployment and HR

Philippe François

Julien Hick

The socialist and liberal unions recently rejected the 2011-2012 draft interprofessional agreement (IPA), a cross-industry framework agreement concluded every two years that covers a number of important employment-related issues, such as the applicable percentage by which wages can be increased. Due to rejection of the IPA, this percentage has been fixed by means of a royal decree. Based on this royal decree of 28 March 2011, the applicable percentage for 2011 and 2012 is 0% and 0.3%, respectively. It should be noted that this provision is not related to the automatic indexation of salaries, which continues in effect based on the applicable industry-level collective bargaining agreements. In addition, wages can still be increased further to the application of existing salary scales.

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