WILLEMSTAD - In its 2025–2029 Action Plan, the Partido Alternativa Real (PAR) includes a proposal to raise the AOV (Old-Age Pension) to XCG 1,500 per month.

In a press release dated July 16, 2025, the Minister of Finance provided an explanation regarding the status of the adjustment, indexation, and/or increase of the AOV. At the end of that statement, the minister referenced various sources and documents supporting the explanation.

According to a presentation by the IMF at the end of June, the real purchasing power of pensioners has decreased by 23%, meaning that their purchasing power is now equivalent to XCG 668. The AOV pension currently represents approximately one-third (32.7%) of the minimum wage (XCG 2,040) in 2025. These figures clearly underscore the need for reform of the AOV pension law. The current government’s 2025–2029 Governance Program also mentions, on several occasions, the need to increase the AOV amount. 

In its 2025–2029 Action Plan, PAR proposes several alternatives to generate revenue for increasing AOV pensions, including: 

Granting temporary work permits to undocumented persons residing in Curaçao (similar to Aruba’s model), allowing them to contribute to the AOV pension fund and other social programs through direct taxation. Given the island’s aging population—with fewer people working—AOV contribution revenues have been declining sharply. 

Transitioning from a direct tax system to a more indirect tax system, so that everyone— including undocumented residents and tourists—contributes to the AOV pension fund through taxes on consumption and purchases in Curaçao. 

PAR believes that by January 2027, a structural reform of the AOV pension fund, including an increase and/or indexation of pensions, will be feasible. However, to ensure that all pensioners do not have to wait two more years to receive any improvement in their income, PAR proposes the following interim measures: 

A temporary allowance (“Toelage”) of XCG 637, to raise the total AOV pension to XCG 1,500, starting January 2026. This would improve the quality of life of all pensioners while awaiting the approval of the new AOV pension law, which will include the structural reforms planned for 2027. 

Financing this allowance through additional tax revenues generated by economic growth, as outlined in PAR’s earlier proposals, while remaining aware that the rate of population aging is outpacing economic growth. 

Through these measures, PAR aims to ensure a fair and sustainable improvement in the living conditions of Curaçao’s pensioners while maintaining a responsible fiscal balance.