Parliament Approves Law Introducing Minimum Hourly Wage

This new law ensures that 29 to 32 percent of private sector employees will receive a pay increase for every hour they work.

Minister of Tourism, Labor, and Transport Wendrick Cicilia attended the parliamentary session to present and discuss the new law. The updated wage calculation system aims to provide fairer labor compensation for over 9,000 workers, particularly those in the hospitality, catering, and tourism sectors.

“With this new mechanism, we are ensuring that more than 30 percent of our workforce is treated fairly,” said Minister Cicilia. “The government recognizes the need for multiple measures to improve purchasing power and the standard of living for our community. Adjusting the minimum wage law is an important step in that process.”

New Calculation Method: Hourly-Based Minimum Wage

The previous calculation method dated back to 1972, based on the NAD (normal working hours), which varied by sector. Some industries operated on a 40-hour workweek, while others required 42, 44, or even 46 hours per week. Despite these differences, all workers received the same monthly salary, creating significant inequity.

Under the old system, a conversion factor of 4.28 was used to calculate monthly salaries from weekly wages, meaning employees working more hours earned the same as those on a standard 40-hour week.

The new law introduces a minimum hourly wage of 11.58 Aruban florin. For monthly calculations, a conversion factor of 4.333 will now be applied. This update creates a fairer link between hours worked and pay.

Salary Increases

• Employees working 42 hours per week will receive a monthly increase of 121 florin.
• Employees working 44 hours per week will receive a monthly increase of 221 florin.
• Employees working 45 hours per week will receive a monthly increase of 271 florin