Why Is the Introduction of a Minimum Hourly Wage Important?

ORANJESTAD – The Ministry of Labor, in cooperation with the Department of Labor and Research (DAO), announces that as of January 1, 2026, a minimum hourly wage will be introduced. This measure aims to eliminate wage inequality between employees who work 40 hours per week and those who work more than 40 hours per week.

As of January 1, 2026, all employees 18 years of age and older who are entitled to the minimum wage must earn at least the legally established minimum hourly wage, regardless of the number of hours worked per day, per week, or per month. The minimum hourly wage will be AWG 11.58 as of that date.

The changes taking effect on January 1, 2026, include:

  • the introduction of a minimum hourly wage of AWG 11.58 for all employees aged 18 and older;
  • application of this minimum hourly wage regardless of the number of hours worked or the position held.

In addition, the factor used to calculate monthly salaries has been adjusted and will now be set at 4.333. This means that an employee who works 40 hours per week and currently earns the minimum monthly wage of AWG 1,986.20 will be entitled to a monthly salary of AWG 2,007.50 as of January 1, 2026.

Who Does This Legislative Change Apply to as of January 1, 2026?
To determine whether an employee falls under this law, the hourly wage must be known. If the hourly wage is lower than the legally established minimum of AWG 11.58, it must be adjusted as of January 1, 2026. Employees who earn an hourly wage higher than AWG 11.58 are not subject to this legislative change.

Employees who currently earn a monthly salary of AWG 2,257.93 or less should use the formulas below to determine whether this legislative change applies to them.

How Is the Minimum Weekly or Monthly Wage Calculated?
The minimum weekly wage is calculated using the following formula:
Weekly wage = number of hours worked per week × minimum hourly wage
The minimum monthly wage is calculated using the following formula:
Monthly salary = number of hours worked per week × minimum hourly wage × factor 4.333

For more information about the minimum hourly wage that takes effect on January 1, 2026, please consult the available resources: