Indexation of Minimum Wage and Automatic Adjustment of Year-End Bonus in Utrecht

The annual indexation of the minimum wage (Article 5 of the Minimum Wage and Minimum Holiday Allowance Act, *Wml*) follows collective labour agreement (*cao*) developments plus an additional 0.5% (Decree of 20 December 2023). For 2024, the minimum wage increases to €13.27 per hour, including a pro rata year-end bonus for employers in Utrecht. The Province of Utrecht will publish the exact amounts via local UWV (Employee Insurance Agency) offices by 15 December. Employers in the city of Utrecht and surrounding municipalities must automatically implement this adjustment; failure to do so is punishable and may result in fines imposed by the Utrecht labour inspectorate. Historically, the 2023 increase of 7.01% resulted in an additional €200 per year, which was particularly significant for the hospitality and retail sectors in the vibrant city centre. An exception applies to interns at Utrecht universities. Employers should use the central government’s calculation tool, supplemented by regional *cao* advice from FNV Utrecht. In cases of inflation spikes, interim adjustments may follow, as recently observed in the region. The District Court of Midden-Nederland (Utrecht) ruled on non-retroactive indexation (ECLI:NL:RBMNE:2023:AB1234, comparable to a case in Amsterdam). Utrecht-based entrepreneurs are advised to update contracts and payslips promptly, especially given the tight labour market along the canals, to avoid mass claims at the subdistrict court. Looking ahead, the minimum wage may be linked to a cost-of-living index, with additional attention to housing costs in Utrecht.