nu

Purchasing power of Dutch households rises by 1.2 percent on average

Purchasing power of Dutch households rises by 1.2 percent on average

The average purchasing power of Dutch households rose by 1.2 percent in 2025, with working households seeing a more significant increase of 2.2 percent due to rising wages. However, pensioners and the self-employed experienced limited growth, largely impacted by recent tax policy changes and reduced financial deductions.

The purchasing power of Dutch households increased by an average of 1.2 percent in 2025. This growth was particularly notable for working households, which saw an average rise of 2.2 percent, largely driven by wage increases that outpaced the 3.3 percent inflation rate. Consequently, over six out of ten households experienced a financial improvement during the year. Factors such as changing job roles or adjusting working hours also influenced these individual financial outcomes.

In contrast, the growth in purchasing power was more limited for pensioners and self-employed individuals. This stagnation was influenced by specific tax adjustments, including a reduction in general tax credits and a lack of significant increases in labor tax credits. Furthermore, self-employed workers faced additional financial pressure due to the scaling back of the self-employed deduction and profit exemptions for small and medium-sized enterprises. Overall, while many experienced gains, nearly four out of ten households saw a decline in purchasing power due to factors like reduced working hours or temporary unemployment.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

Related articles

Port of Amsterdam applies for permits for eight wind turbines

Port of Amsterdam applies for permits for eight wind turbines

The Port of Amsterdam has applied for permits to install eight 200-meter-tall wind turbines in the Western Port area to increase regional renewable energy production. The Province of North Holland will now review the applications, though approval is not guaranteed given recent regional political conflicts over wind energy projects.

Dutch petrol prices continue to fall, approaching 2.45 euros

Dutch petrol prices continue to fall, approaching 2.45 euros

Petrol prices in the Netherlands have continued their downward trend, with the recommended price for Euro95 reaching approximately 2.45 euros per liter. This decrease follows a record high observed in early October, while diesel prices have also seen a modest decline.

Ajax's financial lead over PSV is also under pressure: 'The brand is shrinking along with the results'

Ajax's financial lead over PSV is also under pressure: 'The brand is shrinking along with the results'

Ajax is struggling to maintain its financial competitiveness against PSV Eindhoven due to high wage costs and an aging squad. The club's reliance on a singular strategic vision under Jordi Cruijff leaves it vulnerable as its brand value tracks with declining on-field performance.

Judge blocks higher municipal tax for canal cruise passengers

Judge blocks higher municipal tax for canal cruise passengers

A court has ruled that the city of Amsterdam cannot increase the passenger tax for canal cruise boats to 2.50 euros, reinstating the former rate of 1.50 euros. The judge found that the proposed hike was unlawful because the city failed to justify the fee with direct benefits to the cruise operators and attempted to fund unrelated public programs.

Judge blocks higher municipal tax for canal cruise passengers

Judge blocks higher municipal tax for canal cruise passengers

A court has ruled that Amsterdam acted unlawfully in raising the passenger levy for canal cruise boats to 2.50 euros, ordering the rate to return to 1.50 euros. The judge found that the city failed to justify the increase, as the revenue was intended to fund unrelated social programs rather than nautical services.