Employers in the Netherlands have submitted final offers for labor contracts in key sectors, signaling significant labor negotiations as two major collective labor agreements (CAOs)—for the ICT and housing services sectors—get underway.
The employers' final offers differ in terms of duration and salary increases. The CAO for information, communication and office technology (ICT), which will last 12 months, runs from April 1, 2025, to March 31, 2026. Under this agreement, salaries are set to rise by 2 percent on April 1, 2025, and another 2 percent on January 1, 2026. This proposal is now in the hands of labor unions, who will present it to their members for consideration.
In addition to salary increments, the ICT CAO proposes modifications to employee benefits and work conditions. A new pension scheme is anticipated to take effect on January 1, 2026. Furthermore, a home office allowance will be adjusted to €2.40 for each day an employee works from home, encouraging remote work options.
Notably, the agreement also emphasizes the importance of taking time off, stipulating that employees must take at least 14 consecutive days of vacation each year to avoid accumulating unused leave days. Employees intending to take a day off on May 5 must also submit a request to their employers for consideration.
Simultaneously, another final offer was put forth for the CAO in the housing services sector, which proposes a two-year term beginning on the same date, April 1, 2025, and running until March 31, 2027. This proposal includes a higher initial salary increase of 2.85 percent starting April 1, 2025, followed by additional increments of 1 percent in September 2025, 2.15 percent in January 2026, and 0.5 percent in September 2026. Similar to the ICT CAO, the housing services CAO will also introduce changes to year-end bonuses, increasing them first to 3 percent in 2025, and then to 4 percent in 2026—with this increase fully qualifying as pensionable income.
In a noteworthy move, the generation pact, which allows older employees to work fewer hours, is set to be extended by an additional three years, now lasting until April 1, 2028. Workers who are aged 63.5 and above will be allowed to participate in this generation pact starting from April 1, 2025.
The offer stipulates that employees will gain specific privileges as of April 1, 2025. For instance, they will be entitled to three consecutive weeks of leave once a year, barring overriding business interests. This is a significant enhancement in labor conditions, aiming to improve work-life balance.
Furthermore, employees of corporations will benefit from provisions allowing them to carry an Individual Career Budget (ILOB) when switching to new employers within the same industry. From 2026, May 5 will also be recognized as a paid public holiday, emphasizing the importance of this national day commemorating freedom.
As labor unions deliberate on the employers' proposals, the outcome of these negotiations will be crucial for employees in these sectors, especially in the context of rising living costs and demand for better work conditions.
In the backdrop of these negotiations, it's evident that employers are adapting to the changing needs of the workforce, particularly concerning job flexibility and financial security. Employers acknowledge the necessity for competitive compensation packages but must balance this with sustainability in operations.
Both the ICT and housing services CAOs call for a review of health issues, public holiday arrangements, and labor agreements for part-time jobs, along with promoting health and work balance. The successful conclusion of these negotiations could set a precedent for future labor agreements across various sectors.
Overall, as employers present these final offers, attention will now turn to the unions and their response. It is anticipated that the unions will weigh the proposals carefully, considering the implications for their members and potentially provoking further discussions or adjustments to the terms put forth.
As the situation develops, the economic landscape in the Netherlands remains under close observation, with implications for both employee well-being and employer strategies.
