A 10 percent increase in the minimum wage can lead to a wage increase for people who earn up to 30 percent above the new minimum wage.
This is revealed on Friday from a study by the Central Planning Bureau (CPB) at the request of the Ministry of Social Affairs and Employment (SZW).
Because part of the wages increase when the minimum wage is increased, employers are more expensive, according to the CPB.
The greater the increase in the minimum wage, the greater the effects on the other wage scales, the planning bureau writes.
Currently, just under half a million Dutch people (5.5 percent of all workers) earn the minimum wage.
An increase in the minimum wage by 10 percent costs the Dutch state 6.3 billion euros.
About half of this returns as a result of higher income tax and VAT income due to higher consumption of people who see their wages or benefits increase.
This higher consumption and economic impulse will also lead to more employment in the short term, according to the CPB.
In the longer term, however, that effect of the minimum wage will be turned into a negative effect.
According to the CPB, an increase in the minimum wage can shrink employment by 0.5 percent, due to the lower incentive to work and the poorer competitive position for employers.
Increasing the legal minimum wage also seems to be a matter of time in The Hague.
Political parties want to see a higher minimum wage in almost all preliminary election programs.