Further increase of minimum wage and social benefits Caribbean Netherlands as of the 1st of July 2024
- Published in Soualiga News II
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SABA/SINT EUSTATIUS - From the 1st of July 2024, the Ministry of Social Affairs and Employment (SZW) will be increasing the statutory minimum wage on Bonaire, St. Eustatius and Saba by 11.4 percent, 12.6 percent and 5.8 percent respectively.
In compliance with the advice of the Social Minimum Commission, the minimum wage on all three islands will then amount to 1,750 dollars per month for a 40-hour working week. There will also be an increase in the social benefits paid for such as the AOV pension and social relief.
From the 1st of July 2024, the statutory minimum wage for a working person as of 21 years will amount to 10.10 dollars per hour. This minimum wage will be the same on all three islands. For youngsters, the statutory minimum wage will be age-dependent, and amount to 9.09 dollars (20 years old), 8.58 dollars (19 years old), 7.57 dollars (18 years old) and 6.56 dollars (16/17 years old) respectively.
The statutory old-age pension (AOV) will amount to 1,488 dollars per month (if fully accrued) as of the 1st of July 2024. The allowance paid under the AWW ('general law on widows and orphans’) will be age dependent. For widows and widowers of 58 years and older, the allowance will also increase to 1,488 dollars.
As of the 1st of July 2024, the Welfare allowance for a person living alone will also increase to approximately 1,488 dollars per month; this allowance will be paid every two weeks. If a person that lives alone is also work incapacitated, then the welfare allowance will amount to circa 1,750 dollars per month.
The child benefit will not change and will remain 225 dollars per child per month on Bonaire and Saba, and 216 dollars on St. Eustatius.
An overview featuring the exact amounts for the statutory minimum wage and social benefits in 2024 can be found at www.rijksdienstcn.com
Reduction of employer’s contributions
The government will help employers to partly cover the costs associated with increasing the statutory minimum wage by decreasing the premiums that employers must pay on the gross salary by a total of 3.1 percent.
As of the 1st of January 2024, the contributions payable by employers via the Belastingdienst CN were reduced from 13.4 percent to 11.9 percent. As of the 1st of January 2025, the employer’s contributions will be reduced further to 10.3 percent. What this contribution reduction will mean for businesses will vary from employer to employer and depends on the number of employees and the level of their salaries.
The ministries of SZW and BZK will be monitoring the economy and labour market for possible effects of this increase in statutory minimum wage and social benefits.