In Curaçao, several benefits are mandated for employees, setting minimum standards for leave, compensation, and social security.

Paid Time Off

• Annual Leave: Every employee is entitled to paid vacation days each year. The minimum amount is calculated based on their work schedule:
  • Three times the contracted number of working days per week
  • Minimum of 15 days per year for a six-day workweek
• Public Holidays: Employees are entitled to receive their regular salary on all official national holidays.
• Maternity Leave: Pregnant employees receive 100% of their salary during both pregnancy and maternity leave. The leave duration is divided into two parts:
  • Pregnancy leave: 2 to 6 weeks before the estimated due date
  • Maternity leave: 8 to 12 weeks after childbirth
  • Combined minimum leave duration: 14 weeks
• Paternity Leave: Information on mandated paternity leave in Curaçao is currently unavailable.

Social Security Contributions

Curaçao requires both employers and employees to contribute to social security schemes. These schemes cover essential areas like healthcare, disability, and old age. Employers are responsible for withholding the employee's contribution and paying their own share on top. Here's a breakdown of the social security contributions (employer contributions in percentages):

• Old Age Insurance (AOV): 1.9%
• Basic Illness Insurance (BVZ): 9.3%
• General Insurance Extraordinary Sickness Ordinance (AVBZ): 0.5%
• Disability Insurance (OV): 0.5% to 5% (varies based on industry and risk factors)

In Curaçao, employers often provide optional benefits to attract and retain top talent. These perks go beyond the mandatory benefits required by law.

Health and Wellness

• Private health insurance: Employers may offer this to help employees cover medical expenses beyond what's provided by the national healthcare system.
• Wellness programs: These may include on-site fitness facilities, gym memberships, or sponsorship for employee participation in races or sporting events.
• Employee Assistance Programs (EAPs): These confidential programs offer employees access to counseling and support services for personal or work-related issues.

Financial Security

• Profit sharing: Employers may share a portion of their profits with employees, giving them a stake in the company's success.
• Performance bonuses: Bonuses tied to achieving specific goals can motivate employees and reward high performers.

Work-Life Balance

• Flexible work arrangements: This could include telecommuting options, compressed workweeks, or flexible start and end times.
• Paid time off (PTO): Employers may offer vacation days, sick leave, and personal days beyond the legal minimums.
• Childcare assistance: This could involve on-site daycare facilities, subsidies for childcare costs, or backup childcare options.

Other Perks

• Company car or car allowance: This can be a valuable benefit, especially considering Curaçao's reliance on car travel.
• Free or subsidized meals: Employers may offer free or subsidized lunches or snacks to their employees.
• Educational assistance: Companies may help employees defray the cost of continuing education or professional development courses.
• Discounted products or services: Employees may receive discounts on company products or services, or on products or services offered by partner companies.

In Curaçao, all residents, including employees, are required to have basic health insurance coverage. This requirement is regulated under the Basic Healthcare Act and is implemented by the Social Insurance Bank (SVB).

Basic Health Insurance (BVZ)

The Basic Health Insurance (BVZ) provides a standardized level of healthcare coverage for all residents. Employers are obligated to enroll their employees in the BVZ program and pay a portion of the monthly premiums alongside the employee contribution.

The BVZ covers a range of medical services, including doctor visits, hospitalization, medications, and some preventative care services. The specific details of coverage can be found in the official documentation from SVB Curaçao.

While BVZ provides a solid foundation, some employers may offer additional private health insurance plans to supplement the coverage offered by the basic plan. These plans can cover expenses not covered by BVZ or provide higher quality care options.

Employers in Curaçao are legally obligated to enroll their employees in the BVZ program and contribute to the monthly premiums. The BVZ offers essential health coverage, but some employers may choose to provide additional private health insurance benefits.

In Curaçao, retirement planning typically involves a two-pronged approach: the government-mandated Old Age Pension (AOV) and optional employer-sponsored or private plans.

Old Age Pension (AOV)

All employees in Curaçao contribute to the AOV program through payroll deductions. The current retirement age for AOV is 65 years old. AOV provides a basic monthly pension to eligible retirees, with the amount calculated based on a person's salary and contribution history.

However, the AOV benefit alone may not be enough to maintain a comfortable standard of living in retirement, especially for higher earners. Additionally, the increase in the retirement age to 65 might create a gap between expected retirement income and reality for some employees.

Supplementing AOV with Optional Plans

To supplement the AOV pension, employees in Curaçao can explore employer-sponsored plans and private pension plans. Some companies offer company pension plans, which can significantly boost retirement savings. These plans can be defined benefit (providing a predetermined payout) or defined contribution (where contributions are set, and the final benefit depends on investment returns).

Individuals can also opt for private pension plans offered by insurance companies or financial institutions. These plans offer flexibility and various investment options to tailor the plan to individual needs.

Examples of Optional Plans

The Pension Plan KHN Curaçao is a collective pension plan specifically designed for employees in the hospitality industry, offered through a collaboration between KHN Curaçao and Guardian Group Fatum.

The TOP Pension Plan from ENNIA is a private pension plan that allows employees to save towards a specific retirement goal.