WILLEMSTAD - During their last meeting, the Council of Ministers adopted the National Ordinance, the first tranche of optimization of government-affiliated entities. This was announced by the Minister of Finance Javier Silvania. The law has also been sent to parliament for approval.
In order to qualify for liquidity support from the Netherlands, the Curaçao government had to cut wages. This has been agreed in the National Package.
This law means that from now on top officials of government entities may earn a maximum of 263,000 guilders on an annual basis from a full-time job. In the case of a part-time job, this amount is allocated in proportion to the working time. In addition, a maximum of 88,000 guilders is paid upon termination of the employment contract.
The limit of 263,000 guilders also applies if the top official fulfills several functions. The salaries of top executives who currently earn more will be cut in three equal parts within a two-year period.
Temporary cut
With the entry into force of this law, the income of the staff of government entities will also be temporarily reduced by 12.5 percent per year. This deduction does not apply to persons who earn less than 125 percent of the minimum wage or if the cut would lead to a salary of less than 125 percent of the minimum wage applicable in that year.
This means that for the year 2022 the cut cannot lead to a salary that is lower than 2,082.73 guilders per month for employees older than 21 years with a 40-hour working week. The cut of 12.5 percent is not applied to employees who earn 2,082.73 guilders per month or less.
In accordance with the law, the 12.5 percent cut will expire on June 30, 2023 at the latest.
Within two years after the entry into force of this Act, the ministers must report to Parliament on the effectiveness and effects of this national ordinance in practice.