WILLEMSTAD – The Curaçao government has proposed increasing the old-age pension (AOV) to 1,000 guilders per month starting January 1, 2026. The proposal has been submitted to the pensioners’ labor union, which is expected to decide today whether to accept the agreement.
Under existing legislation, pensioners are entitled to an AOV benefit of approximately 1,100 guilders per month. The government’s proposal therefore remains below the legally calculated amount.
No Full Backdated Indexation
Instead of granting full backdated indexation, the government is offering pensioners a one-time payment of 2,500 guilders. Half of this amount would be paid out in January 2026, with the remaining portion to be disbursed no later than January 2027.
Residency Conditions Apply
Only pensioners who have lived continuously on the islands between October 10, 2010, and January 1, 2026, will qualify for the full proposed amounts. Pensioners who do not meet this residency requirement will receive reduced benefits.
Legal Safeguard Included
The proposed agreement includes a legal safeguard clause. Should a court later rule that the AOV must be fully indexed retroactively, the one-time payments already received would be offset against any additional amounts owed.
The pensioners’ union is expected to announce later today whether it agrees with the government’s proposal, a decision that will determine whether the planned AOV increase can proceed as scheduled.