Introduction of a minimum hourly wage effective January 1, 2026

Introduction of the minimum hourly wage

Aruba joins the other countries within the Kingdom in introducing a minimum hourly wage. The introduction of an hourly wage contributes to a fairer and more transparent minimum wage system and is necessary to promote and protect the prosperity and well-being of workers. The Social and Economic Council (SER) has emphasized that the lack of a minimum hourly wage can be considered a gap in the protection of workers' positions.

The Sustainable Development Goals (SDGs), particularly Goal 8, emphasize the importance of equal pay for equal work and the promotion of inclusive economic growth. This growth must be reflected in society in a sustainable and equitable manner.

On September 1, 2025, the Parliament unanimously adopted the Draft National Ordinance amending the National Ordinance on Minimum Wages to introduce the minimum hourly wage (Introduction of Minimum Hourly Wage). Effective January 1, 2026, all employees aged 18 and older will be required to pay at least the statutory minimum hourly wage, regardless of the number of hours worked.

What is the minimum hourly wage?

Effective January 1, 2026, the minimum hourly wage will be Afl. 11.58.

What are the main changes?

• A.    The current National Ordinance on Minimum Wages has a discrepancy between employees who work 40 hours per week and those who work more than 40 hours per week. Under the current arrangement, both groups receive the same minimum monthly wage, while the latter group works more hours. Converted per hour, this means that an employee with a 40-hour workweek receives Afl. An employee earns Afl. 11.58, while an employee with a 45-hour workweek receives only Afl. 10.29. The introduction of the minimum hourly wage eliminates this inequality. Conversely, the introduction of an hourly wage also means that employees who work less than 40 hours per week (for example, 5 hours per week) must receive at least the legally established hourly wage of Afl. 11.58.
• B.    The conversion factor used to calculate the current minimum monthly wage will be adjusted. Currently, an incorrect factor of 4.28 is used. This factor is incorrect because it is based on a less accurate representation of the number of weeks in a month. Effective January 1, 2026, a more accurate calculation will be used: the correct factor is 4.333, or 52 weeks divided by 12 months.
• C.    The position of domestic workers will be clarified. A clear distinction is made between domestic workers who live with their employer (live-in servants) and employees who do not work as live-in servants. Domestic workers who live with their employer are subject to a minimum hourly wage of Afl. 5.35, as these employees receive board and lodging from the employer. This benefit is considered (part of) their in-kind wage. All other employees receive the regular minimum hourly wage of Afl. 11.58.

To whom does the National Ordinance on Minimum Wages apply as of January 1, 2026?

To determine whether an employee falls within the scope of the National Ordinance, the hourly wage must be determined. If the hourly wage is lower than the statutory minimum of Afl. 11.58, the hourly wage must be adjusted effective January 1, 2026. Employees who already earn an hourly wage above the statutory minimum do not fall within the scope of the National Ordinance. The Directorate of Labor and Research (DAO) urges all employees and employers to take into account the amendment to the minimum wage law, which will take effect on January 1, 2026. 

For more information, please call DAO at 5237720 or email directiearbeid@arubagov.aw. You can also visit the DAO office at Paardenbaaistraat 11 from 7:30 AM to 12:00 PM and from 1:00 PM to 3:00 PM.