April 26, 2016 · Team HG
Last week, plans were announced to abolish the youth minimum wage from the age of 21. Under the current system, this applies from the age of 23, but Minister Asscher believes that 21- and 22-year-olds also deserve an ‘adult’ wage. The process will be implemented step by step over the next two years.
Last week, Minister of Social Affairs Lodewijk Asscher presented plans to phase out the youth minimum wage over the coming years. In the period from 2017 through 2019, the age at which the youth minimum wage lapses will be gradually lowered from 23 to 21, because “adults deserve an adult wage,” according to Asscher.
As a result of the measure, young adults aged 21 and over will receive the same minimum wage as adults. The relaxation is taking place gradually to allow employers to adjust to the system change. There are fears of youth unemployment; it must therefore be prevented that this group of young people is replaced by older, more experienced staff or, conversely, by younger, cheaper employees.
To address this, Asscher introduced two complementary measures. First, youth wages for 18- to 20-year-olds are also being raised; in this way, this group does not become relatively cheaper to employ. Second, the Minister is introducing adjustment compensation in the form of a wage cost subsidy for employers. A fund of €100,000,000, sourced from the disability fund, has been made available for this purpose.
KHN
Trade association Royal Dutch Catering Association (KHN) believes that the easing of restrictions will lead to more people over the age of 21 being hired, at the expense of younger employees. “If you have to pay 20 to 30% more for the same work, there must be increased productivity to match. And you can hardly expect that from young people,” says Paul Schoormans of KHN in a broadcast. BNR News RadioCompensation is now being offered to 21- and 22-year-old employees, but not to the younger group below that. The solution must therefore be sought in productivity improvements, since the money has to be earned back within the company, and that is not always easy.
Jan Bas van Aalderen, chairman of KHN in the province of Groningen and also owner of dinner café Soestdijk in Groningen concurs with this. Via the Dagblad van het Noorden, he indicates that hard-working people in the hospitality industry must be paid well. In the current system, it is attractive for the hospitality industry to train inexperienced people internally using experienced staff. “If that becomes too expensive, you stop doing it. The hospitality industry can now attract more experienced staff for the same money, at least if there are enough experienced people.” That remains to be seen. According to KHN, the measure will not be implemented until around January 2017.
Photo: Facebook KHN
