Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

Minimum Wage Fixing Convention, 1970 (No. 131) - Netherlands (Ratification: 1973)

The Committee notes the information supplied by the Government in response to its previous comment.

Article 1, paragraph 2, of the Convention. According to the information available, the national minimum wage applies to most of the working population and the only groups that are excluded are domestic workers and apprentices. The Committee understands, however, that the Government has at some point considered the possibility of extending minimum wage protection to domestic workers and that a proposal to this effect was prepared for submission to the national Parliament. The Committee requests the Government to specify any changes which may have been intervened in this respect and to transmit a copy of any relevant text.

Articles 1 and 2, paragraph 1, of the Convention. The Committee notes that in addition to the minimum wage for adults, there has also been a decreed minimum wage for young workers in the 15-24 age group, ranging from 30 to 85 per cent of the national minimum wage according to the age of the young worker concerned. It also notes that, under the law on vocational rehabilitation (Wet REA), employers have the possibility of paying a salary lower than the minimum wage to partially disabled employees by way of dispensation. In this connection, the Committee recalls that, in the absence of any provision in the Convention providing for the fixing of different minimum wage rates on the basis of criteria such as the workers’ age or disability, the general principles laid down in other instruments have to be observed, and particularly those contained in the Preamble of the ILO Constitution which specifically refers to the application of the principle of equal remuneration for work of equal value. In addition, the Committee wishes to refer to paragraph 176 of its General Survey of 1992 on minimum wages in which it concluded that the reasons that prompted the adoption of lower minimum wage rates for groups of workers on account of their age and disabilities should be regularly re-examined in the light of the principle of equal remuneration for work of equal value and also that remuneration levels should be determined on the basis of objective factors such as the quantity and quality of work performed. The Committee would therefore appreciate receiving additional information on this point, including for instance any recent studies and surveys addressing these issues and examining the advisability of pursuing a policy of minimum wage differentials on account of workers’ characteristics such as age or reduced ability to work arising from a handicap.

Articles 3 and 4, paragraphs 2 and 3. The Committee notes the Government’s indications concerning the periodic adjustment of the statutory minimum wage based on the average wage growth following the adoption of the Conditional Indexation Act (WKA) in 1992. While noting that the Convention offers considerable latitude as to the frequency and method of reviewing or adjusting minimum wage levels, the Committee would be glad if the Government would provide supplementary information on the functioning of the minimum wage linking system, in particular with regard to the requirement of the Convention for full consultation and direct participation of representative organizations of employers and workers concerned and also the need to consider factors such as the needs of workers, the general cost of living or the relative living standards of other social groups. The Committee refers, in this connection, to paragraphs 340 and 341 of its General Survey of 1992 on minimum wages in which it emphasized the need to take into account the elements laid down in Article 3 of the Convention with a view to avoiding discrepancies between minimum wage levels and the criteria stipulated for fixing them, in particular when minimum wage levels do not keep pace with changes in the consumer price index, and also stressed that minimum wages should maintain their purchasing power in relation to a basic basket of essential consumer goods.

Article 5 and Part V of the report form. The Committee notes the statistical data concerning reported cases of underpayment which seem to suggest that underpayment mostly affects young employees working part-time and that it is basically due to miscalculation of applicable rates rather than to malicious intent on the part of the employer. The Committee requests the Government to continue to supply all available information on the effect given in practice to the Convention, including the minimum wage rates in force, extracts from inspection reports, statistics on the number of workers who are paid at the minimum wage rate (minimum wage earners as a percentage of the total workforce, male/female proportion among minimum wage earners, etc.), relevant judicial decisions, copies of any recent studies and surveys referring to minimum wage questions, as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.