WILLEMSTAD – Social assistance payments in Curaçao should eventually move toward 70 percent of the minimum wage and be automatically adjusted for inflation, according to recommendations from studies commissioned as part of the Curaçao Country Package.
The proposals have been brought back into the political debate by MFK Member of Parliament Ishahier Monte, who has asked Social Development, Labor and Welfare Minister Charetti America-Francisca what has happened with recommendations produced following extensive research into Curaçao’s social security system.
The studies were completed in 2023 and resulted in five reports examining different parts of the system.
One of the recommendations was to gradually increase the amount received by people dependent on “onderstand,” Curaçao’s social assistance benefit.
As an initial step, the research recommended setting assistance for a person living alone at 30 percent of the minimum wage. For a married couple, the proposed level was 52 percent.
Over the longer term, the recommendation was to move gradually toward assistance equivalent to as much as 70 percent of the minimum wage.
Another significant proposal concerns inflation. Researchers recommended automatically linking social assistance to the Consumer Price Index.
Such a system would mean that benefits are periodically adjusted as consumer prices rise, helping prevent inflation from continuously reducing recipients’ purchasing power.
Monte says this issue has become increasingly relevant because Curaçao’s economy has recorded growth while part of the population continues to experience financial hardship.
He referred to findings from the Social Economic Council (SER) and the latest Social Survey by the Central Bureau of Statistics (CBS), which he says show that a considerable number of Curaçao households continue to face financial limitations and difficulties meeting their obligations.
The MP argues that economic growth should ultimately be reflected in the daily lives of residents, including those who have difficulty meeting their basic needs.
At the same time, the Country Package approach does not envision social assistance solely as a higher cash benefit. According to Monte’s explanation of the studies, the system should also encourage participation in the labor market whenever realistically possible.
That would require assistance to be combined with guidance and support aimed at helping recipients capable of working gradually become economically independent.
Monte has therefore asked America-Francisca to identify which of the 2023 recommendations have been adopted and which remain under consideration or implementation.
The questions could reopen a broader discussion over the adequacy of Curaçao’s social safety net: not only how much financial assistance vulnerable households should receive, but also whether benefits should automatically keep pace with the cost of living and how the system can better help people return to employment.