Minister of Finance, Economic Affairs and Primary Sector Geoffrey Wever, together with Minister of Labor Mr. Cecilia and Minister for Senior Care Ms. Wyatt-Ras, has secured full support from the Council of Ministers (AVP-Futuro Cabinet) to propose an amendment to the income tax law introducing an additional tax deduction for working seniors aged 65 and over.
Aruba faces a structural labor shortage across several sectors. The government says retirees, with their extensive knowledge and experience, can make a valuable contribution—but many are discouraged because any extra earnings push them into a higher tax bracket.
Under the proposal presented to the Council of Ministers, every resident aged 65+ who continues working alongside their pension would receive an additional Afl. 10,000 tax deduction. According to the cabinet, this concrete policy tool is intended to: boost labor force participation among seniors who wish to remain active; strengthen seniors’ social engagement; and ease pressure in the labor market by leveraging seasoned expertise.
Minister Wever explained: “With this proposal, we are giving our older retirees the opportunity to keep contributing and participating actively in our society. Their knowledge, skills, and extensive experience are of great value to our community and the next generation, with positive effects for our economy and labor market.”
With cabinet approval secured, the formal process to amend the income tax law will now begin.
