THE HAGUE, 15/08/06 - Real disposable household income in the Netherlands declined by 0.7 percent in 2005 from 2004. This made 2005 the fourth successive year in which the Dutch had less to spend, the Central Bureau for Statistics (CBS) said yesterday.

Primary income totalled 319.5 billion euros, up 2.3 percent from 2004. The sum of taxes and social premiums paid by households however rose 3.2 percent to 165.7 billion euros. Benefit payments to households were up 1.0 percent at 85.4 billion euros.

All in hall, disposable household income grew by just 1.0 percent to 235.4 billion euros. After correction for inflation, it actually declined by 0.7 percent. "This made 2005 the fourth year in a row in which real disposable income declined."

Real disposable income increased each year in the 1996-2001 period. In 2001, the rise was as much as nearly 6 percent. In 2002, a drop of 0.9 percent suddenly followed, with subsequent decreases of 2.2 percent and 0.2 percent in 2003 and 2004.

The primary income of households consists of the income they receive for their direct participation in the labour process plus the balance of income from capital, such as interest and dividends. In 2005, employees' salaries comprised 79 percent of primary incomes. Due to wage moderation and a slightly lower number with jobs, these rose by just 0.7 percent. Income from capital advanced as much as 12 percent, mainly due to growing dividend income.

While taxes increased, premiums for statutory social insurance declined. This largely reflected lower state pension (AOW) and job disability premiums.