Are Salaries Keeping Up With Inflation? A Data-Driven Look at U.S. vs. Netherlands Wages
Photo by Markus Spiske
Examining the Relationship Between Wage Growth and Inflation Trends
If you've ever wondered how salaries in the Netherlands compare to those in the United States, we took a closer look at whether paychecks are keeping up with inflation and what that means for professionals considering a move to the Netherlands.
This article examines salaries in the United States and the Netherlands, using recent salary data from Indeed (2025 figures) and inflation statistics from Statistics Netherlands (CBS) and the U.S. Bureau of Labor Statistics (BLS).
To assess the real value of salaries, we analyzed three professions, Marketing Manager, Software Engineer, and Administrative Assistant, comparing reported salaries in 2025 with cumulative inflation from 2020 to 2024.
The inflation-adjusted salaries provide insights into whether workers are truly earning more in real terms or experiencing a decline in purchasing power.
Findings: Wage Growth vs. Inflation in the U.S. and the Netherlands
U.S. Wage Trends
Cumulative inflation (2020–2024): 21.3%
Average salary growth (across roles): 19%
Real wage impact: A 2.3% decline in purchasing power
Despite nominal wage growth, U.S. salaries have not fully adjusted for inflation, resulting in a minor loss of real income. The gap is smaller than expected, particularly for tech roles, but remains a concern for middle-income workers.
Netherlands Wage Trends
Cumulative inflation (2020–2024): 21.3%
Salary growth: Has not fully kept up with inflation
Real wage impact: Noticeable loss in purchasing power
In the Netherlands, wages have increased at a slower pace than inflation, causing a more significant decline in real earnings for employees across industries.
A comparative table analyzing 2025 salary trends for Marketing Managers, Software Engineers, and Administrative Assistants in the U.S. and the Netherlands. Includes inflation-adjusted figures to show real income impact. Image: newstardom.com
Implications for Workers and Employers
For Employees
The gap between nominal and real wages underscores the importance of negotiating for inflation-adjusted raises.
Non-monetary benefits such as remote work flexibility and employer-provided subsidies may help offset the impact of rising costs.
For Employers
Companies need to adjust compensation strategies to remain competitive in attracting and retaining talent.
Failure to account for inflation in salary reviews may lead to increased turnover and reduced employee satisfaction.
For Policymakers
The disparity between wage growth and inflation raises concerns about cost-of-living adjustments and minimum wage policies.
Legislative measures to address wage stagnation could help reduce economic inequalities.
Despite salary increases, inflation has outpaced wage growth in both the U.S. and the Netherlands, reducing real earnings. While some industries, such as tech, have fared better, middle-income professionals face declining purchasing power.
The data suggests that while the Netherlands offers competitive salaries in certain sectors (especially in tech and finance), inflation has eroded purchasing power more significantly than in the U.S. This can be a crucial factor for expats evaluating job offers or companies considering international hiring.
Looking ahead, continued research is necessary to track salary trends across various industries and geographical regions. Future studies should explore how different sectors adjust to inflation and whether policy interventions can help close the wage gap.
Thinking about working in the Netherlands? This article is part of New Stardom’s ongoing research into global wage trends. A New Stardom White Paper on salaries, inflation, and real income shifts will be released next month.
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