Curaçao Labor Laws & Minimum Wage 2025

• These notes are study notes about the Labor Laws and Minimum Wage in Curaçao as of 2025

Minimum Wage in Curaçao (Effective January 1, 2025)

• As of January 1, 2025, the minimum wage is 11.72 guilders per hour for those 21 and older
• The increase of 3.9% from the previous year accounts for inflation and rising living costs
• A 40-hour workweek equates to a gross monthly salary of 2,029.90 guilders
• The minimum wage applies to domestic workers
• Live-in employees have a maximum deduction of 300 guilders per month for room and board
• Live-out employees may have 1.50 guilders deducted for breakfast and 5 guilders for a hot meal

Adjusted Minimum Wages for Employees Under 21

• 20 years old: 90% of minimum wage, which equals 10.55 Nafl per hour
• 19 years old: 85% of minimum wage, which equals 9.96 Nafl per hour
• 18 years old: 75% of minimum wage, which equals 8.79 Nafl per hour
• 16/17 years old: 65% of minimum wage, which equals 7.62 Nafl per hour
• These adjustments are designed to protect employees' purchasing power, ensuring fair wages in line with economic developments

Employment Agreement 2000 (Curaçao Civil Code, Book 7, Title 10)

• This governs the rights and obligations of employers and employees
• An employment contract is an agreement where an employee works under the employer's authority in exchange for a salary
• Oral agreements are valid, but written contracts are recommended

Probation Period

• The maximum length is 2 months
• Either party can terminate the contract without justification during this time

Salary and Obligations

• Salary must be at least the minimum wage and must be paid on time
• Salary deductions are only allowed if legally permitted or approved by the employee

Working Hours and Rest

• The maximum workweek is 40 hours
• There is a right to breaks and rest days

Termination and Dismissal

• Notice period is based on service duration
  • Less than 5 years: 1 month
  • 5-10 years: 2 months
  • 10-15 years: 3 months
  • Over 15 years: 4 months
• Immediate dismissal is possible for serious offenses, such as theft or fraud
• Dismissal permits are often required unless for immediate termination due to misconduct

Sickness and Leave

• Employees are entitled to paid sick leave for a limited period
• There are legally defined vacation days and leave entitlements

Special Employment Forms

• Includes regulations for temporary contracts, part-time work, and zero-hour contracts
• A maximum of 3 consecutive temporary contracts or 2 years total is allowed
  • Otherwise, it automatically becomes a permanent contract

Overtime Regulations and Payment (Employment Agreement 2000)

• Overtime is defined as work performed beyond regular hours, as stated in the employment contract or collective agreement
• Employers cannot expect employees to work overtime routinely, unless necessary for business operations
• Employer approval is generally required for overtime
• There are legal limits on the number of overtime hours per week/month
• Weekday overtime is at least 150% of the normal hourly wage
• Overtime on Sundays and public holidays is at least 200% of the normal hourly wage
• Higher rates may apply under collective agreements or individual contracts
• Employers and employees may agree to compensate overtime with time off instead of additional pay
• This agreement must be documented in writing and used within a reasonable timeframe
• Different rules apply to certain industries, such as healthcare, hospitality, and security
• Managers and executives may be exempt from overtime pay if specified in their contract

Cesantia (Severance Pay) under the Employment Agreement 2000

• Employees are entitled to severance pay if their employment ends through no fault of their own or if they have worked for at least 1 year with the same employer
• No severance is granted if the employee is dismissed for misconduct, resigns voluntarily, or reaches retirement age
• Severance payment depends on the employee's years of service
  • 1-10 years: 1 week's salary per year
  • 10-20 years: 1.25 weeks' salary per year
  • 20+ years: 2 weeks' salary per year
• The employer must pay cesantia immediately upon dismissal
• If not received, the employee can file a claim with the Social Insurance Bank (SVB)

Child Labor Regulations under the Employment Agreement 2000

• Children under 15 cannot work, except in special cases
• Light work that does not affect schooling, health, or safety is allowed from age 13
• Employment for ages 15–18 is allowed under strict conditions
  • No hazardous or heavy work
  • No night shifts (typically 7:00 PM – 7:00 AM)
  • Work must not interfere with education
• Prohibited work for minors includes jobs dangerous to health/safety
  • Factories or hazardous machinery
  • Toxic substances or physically demanding work
  • Night shifts and overtime
• Cultural, sports, and advertising activities are permitted with government approval
• Internships and apprenticeships are allowed if educationally beneficial
• Employers violating child labor laws face fines and sanctions
• The Labor Inspectorate monitors compliance