News item | 24-06-2022 | 16:15
Aruba can start phasing out the salary discount of 12.6%. This has been decided in the Kingdom Council of Ministers. There is no green light for Curaçao and Sint Maarten yet, they are still looking at the conditions.
State Secretary Van Huffelen of Kingdom Relations wants to offer Aruba, Curaçao and Sint Maarten the opportunity to phase out the salary discount. She is pleased that Aruba can now take a first step. “Everyone sees that the cost of living is currently rising sharply. Then it is logical that the reduction of the salary discount will also be considered. It is great that Aruba now sees opportunities for this.”
The Netherlands has specified four conditions for phasing out the salary discount:
- Introducing the national ordinance for the standardization of top incomes.
- The money for the complete or partial phasing out must be found within one’s own budget. The C(A)ft tests this.
- When the salary discount has been completely removed, there should be no more budget deficit unless there are new unforeseen circumstances.
- The 25% discount on salaries for political office holders will remain in effect for the time being.
In addition, the countries were asked, if possible, to:
- In any case, let the salaries in the lowest scales rise first because those employees are hit hardest by the rising prices.
- Wanting to keep and pay attention to the austerity of employment conditions agreed earlier in the country packages.
- Reflecting on the fact that due to the phasing out of the discount, the salary of some civil servants may be higher than that of political office holders for whom the discount of 25% is maintained.
State Secretary Van Huffelen expects that Curaçao and Sint Maarten will soon also take steps to reduce the salary discount. In order not to have to wait for the next Council of Ministers during the summer recess, she and the Minister of Finance are authorized to assess whether the conditions have been met and to take a decision on this.