WILLEMSTAD – Curaçao's economy has recorded three consecutive years of strong growth, yet many working families continue to struggle to pay for basic necessities. That contradiction is at the center of concerns raised by Member of Parliament Ishahier Monte, who is questioning why the country's economic expansion has not resulted in stronger improvements in the purchasing power of minimum-wage earners.
In a letter to Minister of Social Development, Labor and Welfare Charetti America-Francisca, Monte argues that impressive economic statistics conceal a more difficult reality for households facing rising food prices, utility bills, transportation costs, and other everyday expenses.
Member of Parliament Ishahier Monte
According to figures from the Central Bureau of Statistics (CBS) cited by the parliamentarian, Curaçao's economy expanded by 4.3 percent in 2023, 5.0 percent in 2024, and 5.1 percent in 2025.
The construction sector recorded growth of 9.4 percent in 2025, while the hospitality sector expanded by 10.8 percent.
These figures indicate substantial economic activity, particularly in sectors connected to tourism, investment, and development.
However, Monte argues that the benefits are not being experienced equally across society.
He points to what he describes as hidden poverty, families struggling to make ends meet, and workers who remain unable to cover their basic needs despite being employed.
The parliamentarian refers to reports and observations from the Central Bank of Curaçao and Sint Maarten (CBCS), CBS, the Social and Economic Council (SER), Economenclub Curaçao, and researcher Dr. M. Goede, which he says have repeatedly highlighted concerns about economic inequality and household financial pressures.
One of Monte's principal concerns is the relationship between minimum wage increases and inflation.
According to his calculations, Curaçao's statutory minimum wage increased from XCG 9.00 per hour in 2017 to XCG 11.93 in 2026.
That represents a nominal increase of approximately 32.6 percent over nine years.
However, Monte notes that cumulative inflation during the same period amounted to approximately 31.5 percent, based on government-published figures.
The comparison suggests that the minimum wage has barely increased in real purchasing-power terms over that period, despite the substantial nominal increase.
In other words, workers may be receiving more money per hour than they did in 2017, but much of that increase has been absorbed by higher prices.
Monte argues that this is especially troubling for households with limited incomes.
He refers to a 2025 Central Bank study indicating that lower-income groups experience inflation more severely because nearly 60 percent of their spending goes toward food, electricity, and gasoline.
When the prices of these essential goods and services increase, low-income families have relatively little flexibility to reduce their spending.
Unlike higher-income households, which may be able to postpone discretionary purchases or adjust their savings, minimum-wage earners often spend most of their income on necessities.
Monte believes this helps explain why economic growth figures can appear encouraging while many residents continue to experience financial hardship.
The parliamentarian also highlights the relatively small minimum wage increase introduced in 2026.
According to his letter, the hourly minimum wage rose by XCG 0.21, equivalent to approximately 1.8 percent.
He describes this as the lowest percentage increase in any year in which the minimum wage was raised since 2020.
The preliminary adjustment for 2027 is even smaller, at XCG 0.14 per hour.
For someone working 40 hours per week, a 14-cent hourly increase would amount to approximately XCG 5.60 in additional gross weekly earnings, or about XCG 24.27 per month on average.
Monte questions whether such an increase could meaningfully improve the financial position of workers facing rising living expenses.
The parliamentarian acknowledges that Curaçao has limited influence over international developments affecting prices.
As a small island economy dependent on imports, Curaçao is exposed to external cost pressures, including fluctuations in global food and energy prices.
Nevertheless, he argues that the government and Parliament have a responsibility to protect residents' purchasing power wherever possible.
He believes that annual inflation-based adjustments alone may not be sufficient if the existing minimum wage is already too low to cover basic living expenses.
This raises a broader policy question: should the minimum wage merely compensate workers for inflation, or should it gradually move toward a level that allows them to meet essential household expenses?
Monte refers to statements by Minister America-Francisca indicating that the government wants the minimum wage to reach the minimum subsistence level by 2029.
He considers that objective important but wants to see a concrete plan demonstrating how it will be achieved.
The issue also requires consideration of the potential effects of higher wages on employers, employment opportunities, and consumer prices.
In its December 2025 advice concerning the 2026 minimum wage adjustment, the SER recommended monitoring these effects systematically.
Monte is asking whether the government has implemented those recommendations and what additional support is being considered for households that do not benefit directly from minimum wage increases.
That includes families whose income comes from sources other than employment at the statutory minimum wage.
The parliamentarian's questions highlight a fundamental challenge facing Curaçao's economic policymakers.
Economic growth can increase business activity, investment, employment, and government revenue, but it does not automatically guarantee that every household experiences an improvement in living standards.
The distribution of economic benefits depends on wages, employment conditions, productivity, taxation, social protection, and the cost of essential goods and services.
Monte is therefore urging the government to explain how its minimum wage policy fits into the broader objective of improving residents' economic well-being.
He wants the minister to clarify whether a larger adjustment is being prepared for 2027 and how the government intends to close the gap between the statutory minimum wage and the cost of meeting basic needs.
For the parliamentarian, the issue is ultimately about ensuring that Curaçao's economic success is reflected not only in national statistics but also in the financial circumstances of ordinary working families.
His message is that sustained economic growth should create opportunities for a broader improvement in living standards, particularly for residents who continue to struggle despite having jobs.