THE HAGUE, 19/12/06 - Collective labour accord (CAO) pay rises in the Netherlands have averaged 1.7 percent this year, according to the Autumn Report sent by Social Affairs Minister Art Jan de Geus to parliament yesterday.

In 2005, CAO pay rises averaged just 1 percent. "Still, pay rises also showed a reasonably moderate picture across the board this year," in De Geus' view. "For almost 60 percent of employees, CAO pay went up by less than 2 percent."

The figures only reflect changes in contract pay. "It is it not therefore a matter of (individual) pay rises due to promotions and pay-scale increments," according to the report.

The report shows that 81 percent of the 123 CAOs surveyed include agreements on the career savings scheme (levensloopregeling). This allows employees to save up for interim leave for training, a sabbatical or early retirement.

Under 44 CAOs, it was agreed that the employer will make a financial contribution to the levensloopregeling. "This contribution ranges from 0.4 to 3.8 percent. On average, the contribution is 1 percent per employee."

In 48 CAOs, salary payment over the first two years of illness is smaller than or equal to 170 percent of the annual income. In 42 CAOs, this payment can turn out at above 170 percent if the employee makes sufficient effort to get back to work. In 25 agreements, the payment is unconditionally higher than 170 percent.

Agreements in the field of 'employability' (broader availability) of staff were also surveyed. "Almost all CAOs include agreements on training, training leave and - to a slightly lesser degree - motivating pay policy to achieve broad employability. Mostly, the training agreements are function-oriented, but 23 of the CAOs surveyed also have agreements on general training."