Starting in 2024, retirees will pay lower AZV premiums.
ORANJESTAD - The Tax Department informs all retirees and their employers that effective 2024, the AZV (National Health Insurance) premium will decrease for pensioners 65 years and older.
Until 2023, this rate was 6.5% on the first AWG 30,000 of income or salary (of past employment). If the income or salary of the retiree exceeds AWG 30.000,00 per year, they will pay 10.5% of the remaining amount. Starting January 2024, the percentage on the first AWG 30,000 of income now will decrease to 5%, which entails a reduction of 1.5%.
Last January, following the decision of the Council of Ministers, the Tax Department announced the reduction of the percentage to 5.5%. Meanwhile, they adapted the decision and stipulated it at 5%, effective January 2024.
Maximum income for AZV premium collection
The maximum income for premium collection (premium income limit) for AZV remains unchanged at AWG 85.000,00 for 2024. It means that if the income or salary of a retiree exceeds AWG 85.000,00, they will pay the maximum amount of AWG 7.275 per year in AZV premiums. The maximum premium till 2023 was AWG. 7.725, which entailed a reduction of AWG 450,00 per year.
Example:
Premium income limit AWG 54.000,00
Calculation of AZV premium 2024:
5% on 30.000,00 is AWG 1,500,00
10.5% on 24,000 (54,000 - 30,000) is AWG 2.520,00
In this example, the retiree will pay AWG 4.020,00 in AZV premiums in 2024.
There is no change in the premium for all other individuals who are not retirees (aged up to 64 years). The premium income limit remains AWG 85.000,00 per year, and the percentage is 10.5%. The maximum AZV premium is AWG 8.925,00 per year (85.000,00 x 10.5%).
The Tax Department urges employers to consider these changes when calculating the AZV premium for retirees to ensure they withhold the correct amount.