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Overview
Aruban Florin (AWG)
CURRENCY
Oranjestad
CAPITAL
weekly
PAYROLL FRECUENCY
10
PUBLIC HOLIDAYS
0 to 24.55
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Aruba
Employer
In essence, Aruban companies make payroll contributions under one concept: Social Security. Indeed, the percentages are as follows:
* Cessantia: 40 AWG per employee
0% - 10.50%
Old age, widow, and orphans pension insurance
0% - 8.90%
General health insurance
0% - 2.65%
Sickness insurance
0% - 2.50%
Accident insurance
0% - 24.55%
Total Employment Cost
Employee
Workers Payroll Contributions
0%- 5%
Old age, widow, and orphans pension insurance
0%- 1.6%
General health insurance
0% - 6.6%
Total Employee Cost
Employee Income Tax in Aruba
Workers Income Tax
10%
34,930 AWG and below
21%
Between 34,931 AWG and 63,904 AWG
42%
Between 63,905 AWG and 135,527 AWG
52%
Over 135,528 AWG
Minimum Wage in Aruba
General
Employees in Aruba know their current minimum wage since 2020. Besides, its value for workers in all industries except domestic labor is 1,678 AWG per month. On the other hand, domestic employees can get a minimum salary of 782 AWG per month.
$434 Minimum Wage per month
Payroll Contributions in Aruba
Payroll Cycle
In essence, employers make salary payments in Aruba through payroll outsourcing services once a week or a month.
13th Salary
Indeed, Aruba does not have laws and regulations regarding 13th or 14th salaries. Instead, authorities in Aruba give a holiday bonus to the unemployed and pensioners in the country.
Employee Benefit in Aruba
Visa and work permit in Aruba
Undoubtedly, your Professional Employment Organization in Aruba may tell you that all foreigners require a visitor visa to enter the country. Furthermore, authorities allow travel agencies of specific countries to apply for them on behalf of their customers.
Types of Visas
In essence, you can apply for one of the following visas according to the Employer of Record in Aruba after entering the country with a visitor visa:
- Tourist Visa: Indeed, it applies to foreign citizens who travel to Aruba for vacation, sport, health, or family reasons. Moreover, it has a validity of 180 days.
- Work Permit: Above all, it applies to foreign professionals who want to exercise their professions in Aruba. Furthermore, authorities will grant it for one year if they do not find locally qualified persons.
VAT in Aruba
Undoubtedly, the standard VAT rate in Aruba is 15%.
Working Hours in Aruba
General
In short, employment laws in Aruba state that the working week of five days long involves a maximum of 8.5 hours per day and 42.5 hours per week. On the contrary, it decreases to 8 hours a day and 40 hours per week if the working week has six days.
Overtime
Indeed, every Professional Employment Organization in Aruba will advise you that all working hours surpassing the standard hours are overtime. Furthermore, employers must provide an overtime permit and pay them according to their employment contract/collective agreements.
In addition, employees in Aruba with an overtime permit must receive overtime pay as follows:
- 150% of the regular salary if the overtime involves after-working hours, the employee’s break, or a half day of rest.
- 200% of the basic wage if the employee works during a full day of rest or a public holiday.
Working Week
In summary, the work week in Aruba is from Monday to Friday.
Employee Termination in Aruba
Termination Process
Indeed, employment laws in Aruba dictate that employees and employers can terminate their employment contracts for several reasons. For instance, they can do it by giving notice, mutual consent, or immediate termination for an urgent motive.
Notice Period
Similarly to the termination process, it is mandatory to use a notice period depending on the employee’s length of employment. Indeed, the length of such a period is one month for employees in Aruba with a length of employment below five years.
On the other hand, it can increase to two months if their length of service is between five and ten years, or three months if the worker has a length of employment of between ten and fifteen years.
Finally, it will be of four months if employees in Aruba have more than fifteen years of service.
Severance Pay
In essence, employers in Aruba can set the financial compensation related to employment termination as one week’s pay per year if your length of employment is less than ten years.
Moreover, they can increase it to a 1.25 week pay per year if your length of employment is between eleven and twenty years.
Last, it can be two weeks’ pay per year if your length of employment is over twenty years.
Probation Period
Indeed, an Employer of Record Company in Aruba must use a probationary period. Above all, employment laws dictate that it cannot exceed two months.
Employee Leaves in Aruba
Paid Time Offs
When you hire a payroll outsourcing company in Aruba, you must know that your employees have a paid time off according to the Vacation Ordinance. Indeed, it will be equal to at least three times the employee’s number of working days per week.
In other words, employees in Aruba with a six days’ working week have a vacation leave of fifteen days per year.
Public Holidays
There are 10 national holidays throughout the year.
Vacation Holidays
There are 15 vacation holidays throughout the year.
Sick Days
In essence, employees in Aruba can enjoy sick leave if they suffer from a non-intentionally caused illness that prevents them from working.
On the other hand, this leave period cannot be longer than two years and involves a payment of 80% of the employee’s regular salary from the fourth day.
Paternity Leave
Indeed, Employer of Record in Aruba involves advising workers about their paternity leave. Hence, one piece of advice is that employment laws in Aruba do not include regulations regarding paternity leave.
Other Leave
Besides previous leaves, employees in Aruba will not find legal stipulations related to other leaves in the country. However, according to employment contracts, an employer can grant employees a paid short leave to attend events such as weddings or funerals.
Maternity Leave in Aruba
Undoubtedly, everyone in your HR and payroll outsourcing company in Aruba will congratulate you on your pregnancy. Besides, they will give you 14 consecutive weeks of maternity leave: two to six weeks before birth and eight to twelve weeks after.
Regarding maternity leave payments, Aruban employers must pay mothers 100% of their salaries during maternity leave.
There are 98 leave throughout the year.