An additional 1.2% rise in the minimum wage, which would have also boosted the state pension and benefits, will not go ahead because the pro-farmers party BBB will not back it.

BBB is the biggest party in the senate with 16 of the 75 seats and, senator Eugene Heijnen told broadcaster NOS, the party has now decided not to back yet another rise in the basic salary.

“The increase has been substantial in recent years and it will go up by another 3% on July 1. And that means a rise in costs for employers,” he said. The minimum wage is currently €13.27 per hour, or €2,317 a month for a 40 hour week.

The legislation, which will cost some €800 million a year, was voted through in the lower house of parliament last month.