The minimum wage in the Caribbean Netherlands will increase next year. Minister of Poverty Policy Carola Schouten (CU) announced this on Friday afternoon on Bonaire.
Last week she made a tour of Bonaire, Sint Eustatius and Saba – the BES islands – with State Secretary for Kingdom Relations Alexandra van Huffelen and Glenn Thodé, chairman of the committee that recommended a social minimum in early October. to be carried out in the Caribbean Netherlands. During the tour they spoke with administrators, unions and employers about the implementation of the committee’s recommendations.
In 2010, the three islands became special Dutch municipalities, but incomes have since lagged behind those of the European Netherlands. In its final report, the Thodé committee established that more than a third of the population of the Caribbean Netherlands lives below the poverty line. Glenn Thodé, former governor of Bonaire, said he was “shocked” by the structural poverty that the committee had found among families, especially among single mothers. He spoke about an “imbalance” in the facilities and argued for “equal standards with the Netherlands, of which these islands are part.” People deserve a dignified existence, but there are imbalances.”
From July 1, 2024, the minimum wage on the BES islands will be 1,750 dollars (1,650 euros). Benefits and child benefit will also increase in phases next year. The minimum benefit for singles, the so-called social assistance benefit, will increase as of January 1 to $1,322 on St. Eustatius, $1,335 on Bonaire and $1,406 on Saba. A second increase will follow on July 1, 2024, after which the benefit on all three islands will amount to 1,488 dollars (1,403 euros), which is virtually equal to the benefit in the European Netherlands. As of January 1, child benefit will increase by $90 per child per month to approximately $220 per child.
Objections from entrepreneurs
The measures have been largely positively received on the BES islands. In recent weeks, entrepreneurs on Bonaire have objected to the higher employer costs associated with the increase in the minimum wage. Following a motion in the House of Representatives, the outgoing cabinet is allocating 4.2 million euros to compensate entrepreneurs.
The Thodé Commission’s proposals were adopted by parliament last week with a large majority. Only some right-wing parties voted against. D66 and CU in particular made a case for raising the minimum wage and benefits in one go to an amount that people can live on. “People on the islands often have two or three jobs and even then live well below the poverty line,” said CU MP Don Ceder. “That is impossible. Work must pay.”
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The government also maintains provisions that reduce the high costs of living on the islands. The energy allowance of $1,300 per year for low incomes will continue, as will the reduction in the fixed electricity rate. The rates for drinking water and internet will be further reduced and the government will also make free school meals possible in 2024. Furthermore, 700,000 euros will be available for public transport on the islands. No decision has yet been taken on the advice of the Thodé Commission to organize public transport between the islands as a utility, in order to reduce the very high air fares between the islands.