Payroll and Benefits Guide Curaçao
Last updated: Mar 03, 2026
Contribution
Employer Payroll Contributions
| Contribution Type | Rate |
| Old-age insurance (AOV) | 9.0% |
| Survivors’ insurance (AWW) | 0.5% |
| Sickness insurance (ZV) | 1.9% |
| Accident insurance (OV) | 0.5–5.0% (industry risk-rated) |
| Basic health insurance (BVZ) | 9.3% |
| Exceptional Medical Expenses (AVBZ) | 0.5% |
| Cessantia (statutory severance levy) | ANG 40 per employee/year |
| Total Employer Cost | ~22–27% of gross salary |
Employee Payroll Contributions
| Contribution Type | Rate |
| Old-age insurance (AOV) | 6.0% |
| Survivors’ insurance (AWW) | 0.5% |
| Basic health insurance (BVZ) | 4.3% |
| Exceptional Medical Expenses (AVBZ) | 1.5% |
| Sickness insurance (ZV) | None (employer-paid only) |
| Total Employee Cost | ~12–13% of gross salary (before tax) |
Income Tax
Resident PIT – progressive scale (2025): Curaçao applies progressive rates from 9.75% up to 46.5%; the 2025 income- and wage-tax tables were formally set by ministerial regulations. Brackets for 2025 were widened versus 2024.
Employer taxes
Working Hours
General
Standard working hours are 40 hours/week.
Overtime
Overtime attracts statutory surcharges of at least +50% (AR 2000). In practice, common surcharges are +150% for exceeding legal hours, +200% on weekly rest day/Sunday, and +250% on public holidays.
Payroll
Payroll Cycle
The payroll frequency is monthly.
13th Salary
A 13th-month salary is not mandatory by law
Leave
Annual Leave (vacation)
Employees are entitled to minimum 15 working days per year after one year of service
PTO carryover
In Curaçao, statutory annual leave entitlement (minimum ~15 working days) is regulated by local vacation law, and employees are expected to take their leave within the relevant period following accrual. The statutory text does not expressly establish a broad automatic carryover entitlement for unused leave beyond the year it’s due, and certain provisions indicate that rights to vacation can lapse in specific cases (e.g., extensive absence due to sickness or legal obligations). However, many employers allow leave to be scheduled later in practice, and unused leave must ultimately be settled (e.g., taken or compensated) rather than simply extinguished without basis.
Public Holidays
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 16 February 2026 | Monday | Carnival Monday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 27 April 2026 | Monday | King’s Birthday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 24 May 2026 | Sunday | Whit Sunday (Pentecost) | Standard holiday |
| 2 July 2026 | Thursday | Curaçao National Flag and Anthem Day (Flag Day) | Standard holiday |
| 10 October 2026 | Saturday | Curaçao Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Second Day of Christmas (Boxing Day) | Standard holiday |
Sick Days
Under ZV (sickness insurance), SVB pays 80% of daily wages for medically certified incapacity from day 4 of sickness (the first 3 days are a waiting period; exceptions for hospital admission). Benefit can continue for prolonged illness as determined by SVB medical control; the employer pays the benefit on normal paydays and is reimbursed via the scheme.
Maternity Leave
Total 14 weeks (typically 2–6 weeks pre-natal and 8–12 weeks post-natal). Covered under ZV/BVZ; paid at 100% of salary per prevailing practice under social insurance.
Paternity Leave
Not yet generally statutory in Curaçao as of 2025.
Employer taxes
Termination
Termination Process
Curaçao has permit-based dismissal. An employer generally must first obtain a dismissal permit from the Director of Labor Affairs (SOAW). Alternatives are court dissolution or mutual agreement. After permission is granted, the employer gives written notice and settles all dues (salary, accrued vacation, etc.). Collective/economic redundancies must follow the permit procedure; failure to comply risks nullity and damages.
Notice Period
Notice is only given after the dismissal permit. The period of notice is generally as agreed in the employment contract and must observe any minimums that apply; the authority’s permit specifies the effective date.
Severance Pay
Statutory Cessantia severance applies when employment ends for reasons other than the employee’s gross misconduct, calculated by years of service (fixed schedule under the Cessantia Ordinance) and financed by the employer (including an annual ANG 40 levy). Contract/CBAs may provide more generous severance; court awards may apply in unlawful dismissal.
Probation Period
Probation must be in writing in the contract; typical durations are up to 2 months (longer for certain senior roles by agreement). During probation, either party may end the contract with reduced formalities.
Immigration
-
Non-residents require authorization under the Landsverordening arbeid vreemdelingen (foreign workers ordinance) and admission/residence processing via the government (Toelatingsorganisatie).
-
Employers sponsor the work permit; processing involves labor-market checks and contract registration.
-
After entry, residence/work status must be finalized locally
Minimum Wage
The minimum wage is ANG 2,029.90 per month.
MINIMUM WAGE (PER MONTH)
VAT
Curaçao does not have VAT (yet). It applies sales tax (OB/TOT)—commonly 6%, with 7% on accommodations and some higher/lower rates by category.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 16 February 2026 | Monday | Carnival Monday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 27 April 2026 | Monday | King’s Birthday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 24 May 2026 | Sunday | Whit Sunday (Pentecost) | Standard holiday |
| 2 July 2026 | Thursday | Curaçao National Flag and Anthem Day (Flag Day) | Standard holiday |
| 10 October 2026 | Saturday | Curaçao Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Second Day of Christmas (Boxing Day) | Standard holiday |
Questions & Answers