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Aruba: Increased Minimum Wage and Wage Limit for Benefits

(Apr. 13, 2016) Effective March 1, 2016, the monthly minimum wage for most employees in Aruba was set at AWG1677.60 (about US$926.85) or AWG391.25 (about US$216.16) per week) for workers 18 years of age and older; for domestic workers 18 years of age and older, the new minimum wage is AWG782.65 (about US$432.40) per month. For domestic workers who work 22 hours or less per week, the new hourly wage is AWG8.75 (about US$4.83). (Increase Minimum Wage as per March 1, 2016, ARUBA GOBIERNO (Mar. 1, 2016).)

The new amounts were set by a national decree issued on February 29, 2016, pursuant to article 13, paragraph three, of the Minimum Wage Ordinance, on governmental authority to amend the minimum wage. The decree accordingly amends article 9 of that Ordinance, replacing the previous minimum wage amounts for the two types of workers. Formerly, the general minimum wage was AWG1636.70 (AWG381.70 per week) and the monthly minimum wage for domestic workers was AWG763.55 and the hourly wage AWG8.55. (Landsbesluit, houdende algemene maatregelen, van 29 februari 2016 ter uitvoering van artikel 13, derde lid, van de Landsverordening minimumlonen (AB 1989 no. GT 26) (tussentijdse aanpassing minimumlonen maart 2016) [National Decree Containing General Measures of February 29, 2016 Pursuant to Article 13, Paragraph Three, of the Minimum Wage Ordinance (AB 1989 no. GT 26) (Minimum Wage Intermediate Adjustment March 2016)] (Feb. 29, 2016), AFKONDIGINGSBLAD VAN ARUBA [OFFICIAL GAZETTE OF ARUBA] (AB), No. 13 (2016) (click on PDF file under “AB2016no.13”); Landsverordening minimumlonen [Minimum Wage Ordinance], AB, No. GT 26 (1989, as amended), arts. 13 & 9 (click on PDF file to view text).)  /

Wage Limit Raised for Qualification for Certain Labor Benefits

In addition, in connection with the minimum wage increases, the wage limit for purposes of application of the Labor Ordinance 2013 is increased. (Increase Wage Limit as per March 1, 2016, ARUBA GOBIERNO (Mar. 2, 2016); Landsverordening van 12 maart 2013 houdende vaststelling van nieuwe regels inzake het verrichten van arbeid (Arbeidsverordening) [National Ordinance of March 12, 2013 Laying Down New Rules on the Performance of Work (Labor Ordinance)], AB No. 14 (2013) (click on PDF file under “AB2013no.14”).) Thus, also effective as of March 1, 2016, the new wage limit for qualification for some labor benefits is AWG3,690.72 (about US$2,039.07), a figure determined by multiplying the minimum wage by a factor of 2.2.   The multiplication factor is prescribed under article 3 of the Labor Ordinance.  (Increase Wage Limit as per March 1, 2016, supra.)

Application of the wage limit “means that employees with a monthly salary of Awg. 3.690,72 or Awg. 44.288,64 per year or less fall under the protection of the Labor Ordinance 2013, and are entitled to the conditions specified in this ordinance, including maximum working hours per day and per week, rest days, overtime pay and paid holidays or holiday and commemoration days.”  (Increase Wage Limit as per March 1, 2016, supra.)  The Labor Ordinance does not apply to employees whose gross income exceeds the wage limit.  (Labor Ordinance, art. 3 ¶ 1.)