Purchasing power rises by 1.2 percent in 2025, employees see the strongest increase
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In 2025, people’s purchasing power increased by an average of 1.2 percent. This means that people can buy slightly more than they could last year. This is mainly because wages under collective labor agreements rose by 5.0 percent.
Employees in particular saw the largest improvement in their purchasing power. For pensioners and self-employed people, the increase was small, mainly because of new tax rules. Half of the population has more purchasing power, while the other half has less or the same amount.
How much purchasing power increases depends on the household’s largest source of income, such as wages, a pension, or benefits. People with jobs saw the largest increase in purchasing power, averaging 2.2 percent. More than six in ten employees were financially better off.
This was mainly due to higher wages. But prices also rose by 3.3 percent. As a result, the real wage increase was 1.6 percent.
Employees can also increase their purchasing power by working more hours or finding another job. But if someone loses their job or starts working fewer hours, purchasing power falls. About four in ten employees experienced a decline in purchasing power.
Tax credits changed in 2025. The general tax credit was reduced. The employment tax credit increased only slightly.
For self-employed people, the improvement was very small. The self-employed tax deduction and the small and medium-sized enterprise profit exemption were reduced. The figures for self-employed people may still change later, because they are not yet complete.
People receiving social assistance benefits also gained purchasing power in 2025, by an average of 1.3 percent. This is because the minimum wage increased. Social assistance benefits and the AOW state pension also increase when the minimum wage rises.
Pensioners saw an average increase of only 0.3 percent. For pensioners with a substantial pension in addition to the AOW state pension, the increase in purchasing power was almost zero. When pensioners have a very large supplementary pension, their purchasing power often declines.
Pensioners cannot quickly improve their purchasing power themselves. This depends mainly on the amount of their AOW state pension and other pension income, as well as on taxes.