In many cases, salaries in the public sector are now even higher, especially when adjusted for the number of working hours per year and vacation days. For instance, the Rijk collective labor agreement (Cao) has a 36-hour workweek, while in the private sector, a typical workweek is 40 hours. When converted, the salary prospects in the public sector are on average more favorable than those of many private employers.

Cao pays off — and companies feel it

According to Highberg and the CBS, salaries in collective labor agreement sectors rose by an average of 5.3% in 2025. Companies operating under an AVR did not exceed 3.0%. Over a four-year period, the total increase in collective labor agreement environments is 23%, compared to 13% for AVR's. This difference is becoming increasingly difficult to compensate, especially now that inflation, tight labor markets, and performance-based rewards are putting additional pressure on wage costs.

Employers are losing margin and flexibility

The wage gap means more than just higher costs. Entrepreneurs are stuck: many SMEs lack sufficient margin to pass on wage cost increases in price or productivity. This makes it difficult to keep up with collectively organized employers or government institutions, where wage developments are indeed regulated at a collective level.

Even companies with collective labor agreements are struggling. Negotiations with trade unions are difficult; often more is demanded than is realistic or feasible. At the same time, employees expect growth — especially now that the inflation from 2022 is still felt. For AVR companies, the loss of purchasing power still averages 10%.

Large differences in reward systems

Highberg distinguishes between two reward models: companies with both collective and individual salary increases, and companies that operate with an 'all-in' increase. The latter group (22% of the surveyed organizations) raised practical salaries by an average of 3.7% (median) in 2025. Companies with separate increases reached a median of 5.7%. Here too, it is clear that structural reward policies make a difference — both in costs and attractiveness.

Individual growth is also influenced by age structure and advancement opportunities. Companies with young employees face more pressure for advancement. In organizations where employees have already reached their maximum scale, there is less room for performance-based increases.

Lower positions are rising the fastest — but the top lags behind

According to consultant Emmy Kooloos from Highberg, the public sector is now ahead of the private sector — especially for positions in lower salary scales. Higher positions lag behind, partly due to the Income Standardization Act (WNT). However, the impact on the labor market is significant: accounting firms, for example, see how young tax advisors switch to the Tax Authority, where the Rijk collective labor agreement applies.

Public sector leads in wage development - for now

The wage development in the public sector exceeds that of many private employers, thereby putting pressure on the competitiveness of companies, especially in the SME sector. Collective labor agreements not only offer employees higher salaries but also more security and a more attractive overall package. For entrepreneurs, this means it is time to reassess their employment conditions. Those who want to remain competitive in the labor market must strategically invest in reward policies, development opportunities, and employer branding — with or without a collective labor agreement. The coming years will be decisive for attracting and retaining top talent.