For the first time in years, Dutch workers are seeing wages grow faster than the profits of the companies they work for. New figures from Statistics Netherlands (CBS) reveal that labour income share—the portion of total income going to employees and self-employed people—rose to 70.6% in 2025, up from 70.4% in 2024.
The increase, while modest, marks a reversal of a decades-long downward trend. In 1995, labour income share stood at 81.4%, meaning companies kept a smaller piece of the pie. The recent shift is driven by sharp wage hikes aimed at offsetting high inflation, which have outpaced the growth in corporate operating profits.
However, not all sectors benefited equally. The information and communication sector saw the biggest jump, rising from 77.2% to 82.3%. Agriculture, forestry, fisheries, culture, sports, and recreation also saw increases. CBS notes that industries more reliant on labour than capital naturally have higher labour income shares, meaning workers take home a larger portion of generated income.
Excluded from the calculation are government, education, healthcare, real estate, trade, mining, and financial services. The data underscores a growing debate about income distribution and the balance between wages and profits in the Dutch economy.
Article and image source: iamexpat.nl
