WILLEMSTAD - A raise of one hundred guilders in the old-age pension AOV will cost the Curaçao government an additional amount of 45 million guilders, according to the Minister of Social Affairs and Employment, Ruthmilda Larmonie-Cecilia.
The measure is part of her effort to provide every citizen with an income at least equal to the minimum subsistence level. The Social Insurance Bank (SVB) has been requested to calculate the financial impact of this increase. The number of AOV recipients is approximately 52,000.
Past attempts were made through legislation to ensure that individuals with a minimum wage earn at least the minimum subsistence level, but these efforts did not yield concrete results. According to Larmonie-Cecilia, the current social and economic conditions make it difficult to achieve this objective.
Within the framework of the Country Package, discussions are ongoing regarding reforms in social funds to determine the future direction. The indexation of the AOV, which depends on actual economic growth, is also a point of consideration. An evaluation in August will determine if economic growth allows for indexation, despite earlier reports from the Central Bureau of Statistics that last year's growth was not applicable for indexing.
At present, AOV recipients, with it being their only source of income, receive a monthly amount of 862 guilders, with additional government compensation bringing the total to 1,031 guilders. This is dependent on the number of accrued years.