Second-quarter increase in collectively agreed wages 1.5 percent

In the second quarter of 2007, collectively agreed wages rose 1.5 percent relative to one year previously. The increase is the same as in the first quarter, but distinctly smaller than in 2006, when the increase was 2.0 percent.

Quarterly developments collectively agreed wages

Collectively agreed wages in the subsidised sector marginally above average
Discrepancies between the three collective labour agreement sectors are marginal. In the subsidised sector, wages increased by 1.6 percent in the second quarter of 2007 relative to one year previously. The increase is slightly higher than in the private and public sectors, where the wage increase was 1.5 percent.

Collectively agreed wages by sector

Decrease special allowances in public sector

In the second quarter of 2007, collectively agreed wages in the public sector, excluding special allowances rose by 1.8 percent. This increase is higher than the increase including special allowances, because part of the special allowances, compensation for health care costs, is now included in the regular monthly wage payments. Special allowances paid in the public sector rose substantially in 2006 compared with one year previously. This is chiefly due to the introduction of the employers’ contribution to the life course savings scheme and health care costs.

Contractual wage costs also 1.5 percent up

Contractual wage costs  rose by 1.5 percent in the second quarter of 2007 equalling the increase in collectively negotiated wages. This implies that, on balance, contributions paid by employers were the same as in 2006. In the second quarter, wage cost increases in the three sectors hardly varied. In 2006, wage costs in the public sector still increased far less than in the private and subsidised sectors, primarily because employers paid less into the pension schemes that year.

Rise in contractual wage costs by sector

Monique Hartog