WILLEMSTAD -The National Ordinance Standardization Top Incomes (LNT) has been adopted in Parliament. This means that the 12.5 percent salary cut, which was imposed as a condition of the liquidity support, may now be phased out. A large majority of members of Parliament voted in favor of the motion.
The law was already passed in 2016, but not published. Due to the liquidity support from the Netherlands in connection with the corona crisis, the National Decree resurfaced. Finance Minister Javier Silvania explained that more and more conditions were gradually being imposed by the Netherlands. For example, by adopting the LNT law, the imposed 12.5 percent salary cut would lapse.
Now that the law has been passed, the minister will have to start phasing out, as described in the 2023 budget. It was previously announced that the salary reduction for political authorities will end on 1 July 2023. Civil servants and persons treated as such can cab except receive their full salary at the beginning of 2024.
Although the Advisory Council (RvA) wonders in its latest advice whether reversing the salary cuts is financially feasible, employees whose salaries have been cut will be relieved. Directors of government companies, who earn more than the norm, should reduce this within two years. However, yesterday's meeting called for a transitional period of five years.
Earlier, the Standardization of Top Incomes Act was already adopted in Aruba and Sint Maarten.