Curaçao has taken several actions to improve labour participation among young people. As reported in Monday’s newspaper, employers who hire staff between the ages of 18 and 29 may soon benefit from exemptions on social security contributions, thanks to a decree approved by the Council of Ministers, now awaiting a formal signature from the governor.
Under certain conditions, businesses will not be required to pay the usual premiums when hiring persons without work experience or a completed education. This significantly lowers wage expenses and is intended to encourage the private sector to take on inexperienced or underqualified youths.
The measure also brings benefits for personnel. Youngsters hired under the new scheme will be exempt from income tax, allowing them to keep more of their salary. Additionally, overtime hours – up to 520 hours per year – will be tax-free for all, in both the private and public sectors.
Meanwhile, a bill to make workers ages 18, 19 and 20 eligible for the full minimum wage set at 11.72 Caribbean guilders gross per hour for those 21 and older (see related story) was passed by Curaçao’s Parliament. Young people between the ages of 18 and 21 are currently eligible for only part of the lowest legal salary. For 18-year-olds it is 75%, for 19-year-olds 85% and for 20-year-olds 90%.
At the same time, a motion was unanimously adopted to amend the law so that 16- and 17-year-olds will now earn 75% of the adult minimum wage. Despite the arguments to maintain a difference within the minimum wages to encourage young people to finish school first, the discrepancy with the new ordinance was becoming too great. Sixteen- and seventeen-year-olds only require 65% of the minimum wage.
Similar initiatives have been discussed in St. Maarten for years, but it remained mostly talk. That is regrettable, because with all the concern about teenage-dropouts, -pregnancy, -delinquency and the like, local young job seekers could no doubt use a bit of help.
