Government wants to link minimum wage to the subsistence minimum

ORANJESTAD — The Government of Aruba has announced that during the 2026-2027 parliamentary year it will introduce legislation to link the minimum wage to the subsistence minimum, with the goal that a person who works should not earn less than what is necessary to cover basic living expenses.

The announcement formed part of the Government’s policy speech delivered by Governor of Aruba Alfonso Boekhoudt during the official opening of the parliamentary year. The Government’s position is that the minimum wage should have a direct relationship with the minimum cost required for a person to support themselves.

According to the speech, the change will not be implemented without taking the impact on businesses into account. The Government says the measure will be accompanied by support for small and medium-sized enterprises, so they can remain strong while employees’ wages improve.

The proposal is one of the most concrete labor-market measures announced in the Government’s speech. The Executive argues that the labor market must evolve alongside the economy and that there should be a better connection between education, training and the needs of the labor market.