The buying power of Dutch households will drop behind at the beginning of 2017 after the gross wage.
Inflation and increased health insurance premiums are to blame.
This is evident from the last Tuesday purchasing power calculations of the National Institute for Budget Information (Nibud).
The first paychecks of the year show an average increase of 1.7 percent, but the purchasing power increases, at best, by 1.3 percent.
Differences by income group
The purchasing power is mainly for the middle and higher incomes lower than their gross wage. The difference with last year ranges from 18 euros per month less to spend up to 14 euros more to spend. That's a decline of 0.6 percent to an increase of 0.3 percent.
Salaries up to 35,000 euros a year will have a little more to spend per month: between 4 and 27 euros. That represents an increase of between 0.2 and 1.3 percent. This income group will be offset by increased care and housing benefits, increased child allowance and higher general tax.
Most people see a slight improvement in 2017
For older people with a higher supplementary pension declining purchasing power. Also, early retirees have less to spend. They do not benefit from higher tax where old age pensioners with a state pension do benefit and they are likely to fall back on an average of 20 euros per month.
This blog is part of Tax & Service Solutions