ORANJESTAD (AAN) – FTA Calls for Incentives Before Aruba Minimum Wage Increase, saying any adjustment to the minimum wage should be accompanied by government support for businesses to prevent higher consumer prices and protect the broader economy.
Hose Figaroa of the Federation of Workers of Aruba (FTA) said the organization has long advocated raising the minimum wage to match the island’s minimum subsistence level (bestaansminimum). According to Figaroa, there has been a gap between the legal minimum wage and the income needed to meet basic living expenses since the wage system was first introduced.
He explained that increasing the minimum wage without additional measures could lead businesses to pass higher labor costs on to consumers through increased prices. If the cost of goods and services rises, the cost of living would also increase, pushing the minimum subsistence level even higher.
Figaroa noted that the issue has also been discussed within the Social and Economic Council (SER), where members generally agreed with the need to address the wage gap. He said the FTA submitted formal recommendations to the Government of Aruba in December, proposing that any minimum wage increase be accompanied by fiscal incentives for businesses. These incentives would help employers absorb higher wage costs without significantly increasing product prices.
The FTA also warned that rising prices could negatively affect middle-income earners, who do not benefit directly from minimum wage increases but would still face higher living costs. According to Figaroa, government incentives are essential to ensure that wage adjustments do not unintentionally place additional financial pressure on this group.
FTA maintains that increasing the minimum wage is an important step toward improving workers’ livelihoods, but stresses that the policy should be implemented alongside measures that support businesses and maintain affordability across the economy.
