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Salary and Compensation Insights

Explore salary structures and compensation details in Aruba

Market competitive salaries

Understanding market competitive salaries is crucial for attracting and retaining top talent in Aruba. Market competitive salaries refer to compensation packages that align with the prevailing wage for a specific job title, experience level, and location within Aruba. It takes into account factors like industry standards, skillset and experience, educational attainment, and location.

Factors Influencing Market Competitive Salaries

  • Industry Standards: Salary expectations can vary depending on the industry. Finance or tech positions may command higher salaries compared to hospitality or retail.
  • Skillset and Experience: Employees with specialized skills, certifications, or extensive experience can expect higher compensation.
  • Educational Attainment: Certain roles may require specific degrees or qualifications, impacting salary expectations.
  • Location: Cost of living can influence salaries. Working in Oranjestad, the capital, might warrant a higher salary compared to a less populated area.

Importance of Market Competitive Salaries

Offering competitive salaries provides several advantages:

  • Attracting Top Talent: Competitive salaries help attract a wider pool of qualified candidates, increasing your chances of finding the best fit for the role.
  • Retention: Competitive salaries boost employee morale and satisfaction, reducing turnover and associated recruitment costs.
  • Improved Employer Branding: A reputation for offering competitive salaries strengthens your employer brand, attracting a more engaged workforce.

Determining Market Competitive Salaries in Aruba

Several resources can help you understand market competitive salaries in Aruba:

  • Salary Surveys: Organizations like Mercer or Willis Towers Watson conduct regular salary surveys that provide benchmarks for various positions across industries and locations.
  • Job Boards: Many online job boards display salary ranges for advertised positions, offering insights into current market trends.
  • Recruitment Agencies: Consulting with recruitment agencies specializing in your industry can provide valuable insights into competitive salary ranges.

Minimum wage

Aruba has specific minimum wage regulations for different categories of employees. These regulations are crucial for employers operating in the Aruban market.

Minimum Wage Ordinance

The primary legislation governing minimum wage in Aruba is the Minimum Wage Ordinance. This ordinance sets minimum wage thresholds based on the type of employment and the duration of the workweek.

Minimum Wage Tiers

The minimum wage in Aruba varies depending on the category of the employee and the workweek schedule:

  • Industry, Construction & Commerce:
    • 40-Hour Workweek: AWG 1,986.20 per month (effective January 1, 2024)
    • 42-Hour Workweek: AWG 1,986.20 per month (effective January 1, 2024) (calculated based on hourly minimum wage)
    • 44-Hour Workweek: AWG 1,986.20 per month (effective January 1, 2024) (calculated based on hourly minimum wage)
    • 45-Hour Workweek: AWG 1,986.20 per month (effective January 1, 2024) (calculated based on hourly minimum wage)

Domestic Workers

The minimum wage for domestic workers is separate from the industry standard:

  • Live-in Domestic Worker: AWG 926.65 per month (effective January 1, 2024)
  • Domestic Worker (22 Hours or Less per Week): AWG 10.30 per hour (effective January 1, 2024)

Important Notes

The minimum wage serves as a baseline, and employers can offer higher wages to attract and retain qualified employees. The Aruban government reviews and adjusts minimum wage rates periodically. It's recommended to consult with official government sources or reliable HR consultancies for the latest information.

Bonuses and allowances

Beyond the basic salary, companies in Aruba offer a variety of bonuses and allowances to attract and retain their employees.

Performance-Based Bonuses

Many companies in Aruba offer annual bonuses that are tied to individual or company performance metrics. These bonuses are usually paid out annually and are based on exceeding sales targets, achieving profitability goals, or exceeding customer satisfaction benchmarks.

Non-Cash Bonuses

In addition to cash bonuses, some employers, particularly those in sales or management roles, provide company cars for both business and personal use.


Aruban employers also offer various allowances to their employees. These include:

  • Meal Allowances: These are offered daily or monthly to offset employee lunch expenses.
  • Communication Allowances: Mobile phone or internet allowances are provided to help employees stay connected for work purposes.
  • Transportation Allowances: Companies might offer these to help employees cover commuting costs, especially if public transportation is limited.

It's important to note that the prevalence and structure of these bonuses and allowances can vary depending on the industry, company size, and employee position. Some companies might also offer profit-sharing programs or educational reimbursement benefits. These comprehensive compensation packages enhance employee satisfaction, loyalty, and motivation.

Payroll cycle

Aruba's labor laws govern payroll practices for employees, and understanding these practices is crucial for businesses operating in Aruba to ensure compliance and timely compensation for their workforce.

Frequency of Payment

Aruban law mandates that employees receive salaries at least once a month. The specific frequency (bi-weekly, semi-monthly, or monthly) is determined by the employment contract between the employer and employee.

Mandatory Payments and Deductions

Several mandatory payments and deductions form part of the typical Aruban payroll cycle:

  • Gross Salary: The employee's base pay before deductions.
  • Social Security Contributions: Employers and employees contribute towards social security at designated rates.
    • Employer Contribution: 18.9% (8.9% Social Security + 10.00% Additional Social Security).
    • Employee Contribution: 8.9%.
  • Pension Contributions: Similar to social security, there are employer and employee contributions towards pensions.
    • Employer Contribution: 16.50% (6.00% Pension + 10.50% Additional Pension).
    • Employee Contribution: Varies depending on the chosen pension plan.
  • Accident Insurance: Employers are required to provide accident insurance for their employees (around 2.5% of gross salary).
  • Sickness Insurance: Employers contribute towards a mandatory sickness insurance plan (approximately 2.65% of gross salary).
  • Income Tax: Income tax is deducted based on a progressive tax system determined by the employee's annual earnings.

Additional Considerations

  • Overtime Pay: Employees working overtime hours are entitled to additional compensation as per their employment contract or collective bargaining agreements.
  • Public Holiday Pay: Employees receive their regular salary for national holidays observed while not working.
  • Paid Leave: Aruban law guarantees paid vacation leave, sick leave, and maternity leave. The specific entitlements and accrual rates should be outlined in the employment contract.
  • Pay Slips: Employers are obligated to provide payslips to employees with a detailed breakdown of their gross salary, deductions, and net pay.
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