Guide to employment, payroll and benefits in

Aruba

Rivermate offers complete payroll, benefits and compliance services for

Aruba

01. Overview

Last updated: 

August 19, 2021

Currency
Aruban Florin
Capital
Oranjestad
Ease of doing business
Language
Dutch
Population
106766
GDP growth
1.33%

02. Grow your team in

Aruba

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Aruba

, particularly if you don't have established local relationships. You can hire employees in

Aruba

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Aruba is an island and a constituent nation of the Netherlands in the Caribbean Sea's mid-south, some 29 kilometers north of Venezuela's Paraguaná peninsula and 80 kilometers northwest of Curaçao. It stretches 32 kilometers from northwestern to southeast and is 10 kilometers wide at its widest point. Aruba is part of the ABC islands, which also includes Bonaire and Curaçao. These and the other three Dutch major Caribbean islands are also referred to as the Dutch Caribbean, with Aruba accounting for roughly one-third of the population. Aruba, along with the Netherlands, Curaçao, and Sint Maarten, is one of the four countries that make up the Kingdom of the Netherlands; all of its inhabitants are Dutch. Aruba has no administrative divisions, but it is divided into eight regions for census purposes. Aruba's capital is Oranjestad, and it has a dry climate and a cactus-strewn landscape, unlike most of the Caribbean. This climate has aided tourism because tourists to the island can depend on bright, sunny skies all year. It has a land area of 179 km2 and is densely populated, with 101,484 people according to the 2010 Census. The population is estimated to be 116,600 people. It is located south of the average hurricane latitudes, but it was hit by two hurricanes in their early stages in late 2020.

04. Public holidays

05. Types of leave

Paid time off

The Vacation Ordinance establishes the minimum number of vacation days that an employee is allowed to each year of work with the same company. Every employee is entitled to at least three times the contractual number of working days per week in vacation days, with the understanding that a six-day-a-week employee is entitled to at least fifteen vacation days per year.During a vacation, an employee is still entitled to receive his or her income. However, a vacation allowance is not required. Furthermore, the employee is entitled to receive his income during (official) national holidays.

Public holidays

Aruba recognizes the following days as public holidays: New Year's Day G.F. Betico Croes Day Carnival National Anthem and Flag Day Good Friday Easter Monday King's Day Ascension Day Christmas Day Boxing Day

Sick days

In the event that an employee is unable to execute his or her duties owing to illness (that was not caused by the employee), the employer is required to pay the employee's wage in full for a reasonable amount of time (unless otherwise stipulated in the labor agreement).

Maternity leave

When an employee is on maternity or pregnancy leave, she is entitled to receive 100% of her salary. Pregnancy leave can be taken two to six weeks before the expected due date, and maternity leave can be taken for eight to twelve weeks after the employee gives birth. In any case, the total amount of time on leave (including both pregnancy and maternity leave) must be at least fourteen weeks.

Paternity leave

There is no statutory paternity leave in Aruba.

Parental leave

Beside the mentioned terms for maternity leave, Aruba does not have any other provisions in the law regarding parental leave.

Other leave

There is no legal stipulation granting the employee a specific amount of time for permitted leave in other situations (such as weddings, funerals, childbirth (fathers), and personal leave). However, unless otherwise agreed, an employee is entitled to his or her wages for a reasonable period of time if the employee was unable to work during that time due to I the fulfillment of a legal or governmental obligation that could not be fulfilled in the employee's free time, or (ii) special circumstances that were not caused by the employee's fault.

06. Employment termination

Termination process

When an employee's employment is terminated, the employer is required to provide a testimonial. Employers may only reveal the cause for termination and information regarding the employee's performance of work if the employee consents.

Notice period

A contract of employment must be terminated prior to the first day of the next month (if one gives notice of termination on the 15th, the notice period will not take effect on the 16th, but only on the 1st of the following month). Employers are entitled to one month's notice after five years of employment, up to a maximum of four months; employees are entitled to one month's notice.

Severance pay

Employees whose employment is terminated for reasons other than their own are entitled to the following layoff compensation. One week pay for each year of service between one and ten years; one and a quarter weeks pay for each year of service between eleven and twenty years; two weeks pay for each year of service beyond twenty years. Employers are required by this ordinance to contribute a premium of Aruban florin per year per employee to the Cessantia Fund.

Probation period

A trial period, which is typically two months, can be agreed upon only in writing and must be identical for both parties.

07. Working hours

General

In Aruba, the maximum working hours for a six-day workweek are 45 hours per week and eight hours per day. Maximum working hours for a five-day workweek are 40 hours per week and eight hours per day. Maximum working hours for a four-day workweek are 36 hours per week and nine hours per day.


Employees who work more than six hours per day should be able to take a half-hour break after five hours. A break that is less than 15 minutes in duration is not considered to be a break. Working during a break constitutes overtime.

Overtime

Overtime working hours should not be more than 10 hours in a week and 4 hours in a day for a six-day workweek. For a five-day workweek, overtime working hours should be at most 15 hours in a week and 4 hours in a day. For a four-day workweek, overtime working hours should be less than 19 hours in a week and 3 hours in a day.


For overtime after working hours or during the employee's break, the compensation is 150 percent of the regular pay. The pay is 200 percent for overtime work during a public holiday or a remembrance day. If an employee has worked more than ten hours per day, he or she is entitled to a hot meal or a meal allowance, and any additional transportation costs incurred in connection with the overtime have to be compensated.

08. Minimum wage

General

The monthly minimum wage in Aruba was set at AWG1677.60 (approximately US$926.85) per month or AWG391.25 (approximately US$216.16) per week for workers aged 18 years and older. The new minimum wage for domestic workers aged 18 and over is AWG782 (approximately US$434.45).

09. Employee benefits

General

Employees whose employment contracts are terminated without their fault or for reasons that cannot be ascribed to them are entitled to a one-time monetary recompense known as the "cessantia" (provided the employee has been employed at least one year).

The Cessantia Ordinance (Cessantia-landsverordening) governs this payout, which is determined based on years of service. Within one year following the end of the employment agreement, the employee must collect his cessantia salary from his employer or, if his employer has been declared bankrupt, from the Social Security Bank of Aruba (SVB).

The cessantia entitlement only applies to employees who will become entitled to a pension or general old age pension following the termination of their employment agreement, provided that the pension is greater than the old age pension and that the old age pension, when deducted from the pension, is greater than twice the amount of the old age pension applicable at the time.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Aruba

to hire a team takes time, money, and effort. The labor law in

Aruba

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Aruba

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Aruba

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Aruba

via our Employer of Record / PEO solution.

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