Do Dutch companies do salary raises?

I’m a Junior Software Engineer with nearly 2 years of experience in tech. I've been working at a fairly large Dutch company for about five months, and I’m starting to wonder when it might be appropriate to ask for a salary increase. I’m currently on a fixed 1-year contract, with the understanding that it will transition to a permanent position afterward.

In my role, I’m one of only two members of my team—the other being my manager. This means I’m responsible for a significant amount of work and multiple projects. Fortunately, my manager is very pleased with my performance, and we work well together as a team. I genuinely enjoy being at this company, and it seems they value me too. The company has high employee retention rates, with many engineers in other teams having been here for over 10 years. This suggests they aim to invest in long-term careers.

My company is highly engineering-focused, and I suspect my current salary is below market standards for someone in my role. My current net salary is approximately €2,450 per month. For context when I accepted the role I was in a bit of a vulnerable position. I had just been laid off the same month my rental contract had expired and so was forced to live with my friend and his wife while I searched for both a new job and place to stay. When I was offered the role i immediately accepted with no discussion of salary throughout the entire interview process apart from briefly mentioning it in a phone call. The recruiter told me the company had not really established a firm salary range as it was a brand new position within this team.

I currently live in Utrecht in a shared house with eight other people, most of whom are students. It was the only accommodation I could find close to the office, but the living situation is far from ideal as you can imagine living with students, its dirty, messy, there's mold everywhere, its extremely run down. I’d love to move into my own place or at least a smaller shared apartment with one or two roommates. However, with rents skyrocketing and the cost of living increasing, it’s financially out of reach unless I receive a salary increase.

Staying in my current living arrangement has been taking a significant toll on my mental, physical, and emotional health. If I don’t receive a substantial increase by the time my permanent contract is finalized, I’m not sure how much longer I can continue living in the Netherlands under these conditions.

Given my situation, do you think it’s reasonable to ask for a raise to €3,500 in the next month or two, and then aim for €4,000 when my permanent contract begins? Am I being overly ambitious here, or does this seem achievable? My manager is aware of my current housing situation and would likely be supportive, but I understand this would also require approval from both my director and HR.