Cuts in Government wages and benefits does not apply to the“ start of the year premium”

ORANJESTAD – The Minister of Finance, Economic Affairs and Culture Xiomara Maduro announced that there will be no reduction in the premium civil servants receive yearly at the start of January.

One of the conditions stipulated by the Netherlands for Aruba to receive the financial support to deal with the effects of the crisis, was the reduction of the government’s payroll costs and their benefits with 12,6% as indicated in the Austerity Law, National ordinance temporary retrenchment of government wages and provisions (AB 2020 no. 108).

To comply with this condition, the public sector had to give in 5% of their monthly salary, 50% of their vacation premium and 50% of their premium received in August and their premium paid in November. The Minister emphasized that the retrenchment does not apply to the premium paid in January. The public employees will not only receive the complete premium paid including the increase of 106 florins as agreed in the bilateral agreement signed on May 28m 2014. That sets the total amount that will be paid  January to 1812 florin. However, the agreed 50% austerity law will apply to all other premiums scheduled to be paid during the course of 2021. These premiums will only be paid to the public employees and not to the members of Parliament or Ministers, since they have already agreed to a 25% cut in their salary and benefits.

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