WILLEMSTAD - The minimum wage in Curaçao will increase slightly from 11.28 guilders to 11.72 guilders per hour as of January 1, a rise of 44 cents. This announcement was made by Anthony Godett, a member of the KEM faction. Simultaneously, Godett is advocating for stricter monitoring of product prices to assess the effects of the wage increase.
The proposal, not tied to inflation indexing but rather a direct adjustment by KEM, is being attributed to Michelangelo ‘Lo’ Martines, a party member currently in custody as part of a criminal investigation. Martines is under suspicion for alleged drug trafficking and money laundering.
Indexation Mechanism
The wage increase deviates from the usual inflation-based indexing and results from political agreements made to support the Pisas II cabinet. Under the standard indexation mechanism, adjustments to the minimum wage are calculated based on inflation, but only when inflation exceeds 2%. In such cases, 60% of the excess percentage is applied. As of October 2024, inflation stood at 3.2% compared to the previous year, but the increase does not follow this formula.
Political Context
The wage adjustment by KEM is part of broader negotiations supporting the Pisas II cabinet, which has been backed by KEM since August 2024. As part of this arrangement, KEM has the authority to appoint the Minister of Social Development, Labor, and Welfare (SOAW). Jason Fullinck has been nominated for the position but is awaiting the completion of his screening process. In the meantime, Fullinck serves as the head of the cabinet for Minister Javier Silvania.
Meanwhile, uncertainty persists regarding the formation of the cabinet. Opposition parties are calling for an urgent public meeting to clarify the political situation. So far, decisions in the Council of Ministers have been made exclusively by ministers from MFK, with the support of KEM and independent parliamentarian Zita Jesus-Leito.