WILLEMSTAD - The presence of undocumented workers in Curaçao has significant financial consequences for the island. A recent report indicates that the Curaçaoan government may be missing out on millions in taxes and social premiums. Additionally, the uninsured medical expenses of this group contribute to the financial strain on the healthcare system.
The government defines 'undocumented individuals' as persons residing in Curaçao without valid residence or work permits. While exact figures are lacking, the Central Bureau of Statistics estimates that between five and nine percent of the population is undocumented. This potentially means that thousands of workers are not paying taxes and social premiums.
Consequences
According to the report, the financial impact of this situation is substantial. Based on a minimum wage, each undocumented employee should pay approximately 6,500 guilders in social premiums annually. If we consider the CBS estimates, the loss of social premiums could amount to tens of millions per year. These revenues could be used, among other things, to finance urgently needed medical treatments and medications.
The presence of undocumented individuals also puts pressure on healthcare. Since they often lack access to regular healthcare, they delay seeking medical assistance, which can lead to higher long-term healthcare costs. Moreover, it increases the risk of the spread of sexually transmitted diseases.
Between 2019 and 2022, medical costs for undocumented individuals amounted to nearly twenty million guilders, approximately 6.5 million per year. The Curaçao Medical Center (CMC) recently received compensation for these costs, approved by the Council of Ministers.
Undocumented migrants represent a potentially valuable addition to the Curaçaoan labor market, especially given the shrinking and aging population. Their contribution can stimulate economic growth and help maintain the social security system. However, their uncertain status comes with risks, such as exploitation and unfair competition for local workers.
The report underscores the urgency of finding a solution and calls for collaboration among different ministries. A solution will not only yield financial benefits but also contribute to a fairer and more humane Curaçao.