WILLEMSTAD - The Curaçao Business Association (VBC) has expressed its concerns about the effectiveness of the minimum wage increase in Curaçao. The VBC questions whether this increase will actually lead to an improvement in purchasing power and a reduction in poverty, given the lack of attention to labor productivity.
The VBC emphasizes that the minimum wage increase, implemented in January 2023 with a 11.2% raise and an additional 5.4% for 2024, may not yield the desired effects. "The minimum wage earner gets paid more for the same work, without leading to extra production," says the VBC.
The organization points out the potential drawbacks of the increase, such as higher wage costs for employers, which could have negative implications for employment. This could be problematic, especially in sectors with many minimum wage workers. A higher minimum wage may also result in increased prices for goods and services, contributing to inflation.
While the VBC supported the previous minimum wage increase, they warned about the consequences of a too rapid escalation. They call for complementary policies that both relieve the private sector and increase the purchasing power of the less privileged.