Some employers provide additional support to employees
In one in three companies, employees receive a one-time extra payment to support high inflation. This was reported by the employers’ association AWVN on the basis of a survey among its members. In half of the cases, the amount of inflation allowance is 500 euros or more, and in four out of ten companies it is 200 euros or less.
According to the AWVN, employers are clearly concerned about the financial health of their employees, although it can be difficult to know who is truly in financial trouble. Employers estimate that a quarter of the workforce has financial problems due to inflation.
Indicators of financial concerns are employees demanding higher wages, higher travel allowances, or paid vacation days. An increase in the number of wage decorations also indicates financial problems, says AWVN spokesman Jannes van der Velde.
Employers also look at not only the low earners but also the middle earners and adjust the bonus amount accordingly. Whether a company offers a one-time payment The payment amount and financial scope varies for each company.
Unions are satisfied with a one-time bonus, but prefer structural wage increases. Van der Velde understands that, but “the one-time bonus is aimed at high inflation and it’s temporary, so eventually the problem of inflation will go away. However, as wages increase, employers are structurally stuck and we don’t make wage cuts for lower inflation.”
In addition to the one-time payment, many companies have also come up with higher pay increases in new collective labor agreements than usual in recent years. According to the AWVN, the average contractual wage increase for 2023 is now 6.2 percent.
Avid music fanatic. Communicator. Social media expert. Award-winning bacon scholar. Alcohol fan.