Curaçao: Labour Regulation
As part of the EU, the islands are subject to the full panoply of Netherlands labour regulation, which is seen as inappropriate in many circumstances.
There are compulsory social security schemes covering sickness and old age pensions as follows:
- The Government introduced the national 'AVBZ' health care scheme in 1997; employees contribute 1.5% of taxable pay with a maximum of US$4,295 annually; employers contribute 0.5% of taxable pay with a maximum of US$1,015 annually.
- Pensions are financed through employee contributions of 6.5% of gross wages to a maximum pay of US$45,133; the employer pays 7.5% to the same maximum.
- Accident insurance contributions range from 0.5% to 5% depending on employment up to a maximum of US$4,295 annually.
Generally speaking, non-residents are subject to social security taxes.
There are statutory minimum wages in Curaçao of ANG1,374.53 from January 2013 for all workers aged 21 and over relating to a standard 5-day 40 hour week. 16 and 17 year olds are entitled to 65% of the minimum wage, 18 and 19 year-olds receive 75% and 85% respectively, while those aged 20 are entitled to 90%.