WILLEMSTAD – The Council of Advice (RvA) has delivered a scathing critique of Curaçao’s new youth employment law, which exempts job seekers up to the age of 30 from paying income tax and social security contributions. According to the Council, the legislation is legally vulnerable, financially unsound, and potentially discriminatory. It warns that the law should only come into effect after significant amendments.
The “National Ordinance for the Promotion of Employment Participation of Youth and Young Adults”, a legislative initiative from members of Parliament, was provisionally approved in March. The law aims to incentivize businesses to hire younger employees by reducing payroll costs.
Discrimination Concerns
However, the Council argues that the law lacks compelling justification for why only young people should benefit, while others with similar incomes do not. It warns that this distinction violates Article 3 of Curaçao’s Constitution and Article 14 of the European Convention on Human Rights.
“Young employees under this scheme will take home more net salary than others earning the same gross wage,” the Council notes, adding that the law fails to explain why this unequal treatment is necessary or justified.
Flawed Implementation Structure
The Council also raises concerns about how the law will be implemented. It points out that the Social Insurance Bank (SVB), which normally handles the collection of premiums and the disbursement of benefits, has been excluded from the process. Instead, all responsibilities are handed to the Tax Authority, a move the Council says will seriously hinder smooth execution.
Moreover, the law lacks a clear supervisory structure, and the legal language is inconsistent. The explanatory memorandum refers to benefits for employers that do not appear in the legal text. Several provisions mentioned in the memorandum are also not legally binding, as they are not incorporated into the actual legislation.
Financial Assumptions Unreliable
The financial justification for the law also falls short. The unemployment figures used to estimate costs and savings contradict each other, and the Council calls the claim that one unemployed youth costs the government 2,378 guilders per month “unrealistic.”
Despite supporting the goal of reducing youth unemployment, the Council recommends that the government delay implementation of the law until all critical shortcomings are addressed through a supplementary legislative process.
Without these revisions, the Council warns the law risks becoming unworkable in practice and vulnerable to legal challenges. It concludes that proceeding without corrections would be irresponsible—leaving the final decision now in the hands of the government.
