WILLEMSTAD - The Curaçao government has announced plans for significant reforms in the social security system. These reforms include an increase in social assistance, the introduction of an unemployment fund and benefits, and an increase in the retirement age from 65 to 67 by 2030.
The proposals were submitted by Ruthmilda Larmonie-Cecilia, the Minister of Social Development, Labor, and Welfare (SOAW), and are part of the National Package submitted to the Parliament.
The announced changes aim to enhance financial security for the less fortunate and increase the financial sustainability of the island. In the short term, it is proposed to increase social assistance for singles to 30 percent and for married couples to 52 percent of the minimum wage. Ultimately, the goal is to raise this level to 70 percent of the minimum wage.
Additionally, there is a plan to establish a new unemployment fund, which will provide benefits to the unemployed. "These steps are necessary to ensure a reliable economic foundation for our citizens," said Larmonie-Cecilia during a presentation to local organizations.
Broader Impact
The increase in the retirement age for AOV is a measure that, according to the minister, is necessary to align pension provisions with increased life expectancy. This should also help improve the financial sustainability of the system. Larmonie-Cecilia adds, "This is not a quick fix but a necessary adjustment to protect future generations."
These proposals aim to strengthen social protection on the island and improve cooperation between the government and social partners. According to the minister, it is crucial that "all stakeholders, including businesses and civil society organizations, play a role in this process."
The parliament will debate the proposals in the coming months. If approved, these reforms are expected to have a significant impact on both the economy and the social fabric of Curaçao.