Since 1968, a minimum wage has applied in the Netherlands. Fortunately, the amount of 100 guilders per week has grown into the present and from 1 July 2021 the minimum of € 1,701 gross per month will apply. To protect this minimum, a number of safeguards have been legally laid down in the Minimum Wage and Holiday Allowance Act (WML). To protect the employee against underpayment, the minimum wage is strictly regulated, taking into account working hours and overtime
Working hours at minimum wage
In principle, the WML is based on a working week with normal working hours. This means a full-time employment contract. This may vary by sector, but most full-time workweeks consist of 36 to 40 hours. The WML also applies this maximum of 40 hours per week.
In case of part-time employment, a proportional part of the minimum wage must be paid. If you work more than 40 hours, the (minimum) wage must be increased proportionally.
Minimum wage and overtime
Often, an employee's overtime hours are only overtime hours if they are worked at the employer's request. To ensure the application of the legal minimum, the minimum wage is based on the hours actually worked compared to the agreed working hours.
If the employer pays a fixed monthly salary and the employee actually works more than the agreed working hours, the employee's hourly wage effectively falls. This may not cause the employee's hourly wage to fall below the legal minimum. The use of an annual hours system and a peak load can prevent underpayment.
The actual extra hours worked must be paid at the applicable minimum wage, or the employer can make written arrangements with the employee to come to a time-for-time arrangement.
Conclusion
The minimum wage provides the necessary protection against underpayment. It is important for employers to make sure that these safeguards for the minimum wage have been sufficiently taken into account.
Clear agreements and a good time registration or a time-for-time arrangement can prevent the necessary worries. Would you like to have your remuneration and employment contracts checked in order to avoid problems? Then contact our labour law specialists without obligation.
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