[2016-24-11] • HOP, Irene Schoenmacker

Tax windfall results in salary increases in education

Educational staff will get a raise next year. The Cabinet can afford this since the government received 4.3 billion more euros in income than indicated by the budget.

The Dutch Finance Minister, Jeroen Dijsselbloem, announced the tax windfall on Friday afternoon. An improving economy meant that individuals and businesses paid more in taxes and social security contributions in 2016. The sale of ABN AMRO generated another 1.3 billion euros for the Treasury.

The Cabinet wants to devote part of this money (330 million euros) to higher salaries for civil servants, educational staff, police officers and military personnel. This is a compensation for the costs associated with next year’s 2.3 percent increase in the costs for the General Pension Fund for Public Employees.

As yet, Prime Minister Mark Rutte does not know whether employees in other sectors will also be benefiting. ‘This is for their own employers to decide,’ he said during his weekly press conference.