The minimum wage is being indexed (see related story) based on a 0.65% rise in the Consumer Price Index (CPI) for the second quarter of 2025 compared to the same period last year, according to the Department of Statistics. To many, it seems hard to believe inflation wasn’t higher over those 12 months.
The new hourly amount will be 10.93 Caribbean guilders effective January 1, 2026. Just about everybody knows that is not a so-called liveable wage in St. Maarten, certainly for a large family.
While any increase is no doubt welcomed by those involved, a cost-of-living alone hardly signifies a financial improvement. However, substantially raising the lowest legal salary has significant consequences for the tourism economy and its competitive position within the region.
Although the six-fold expansion of the basic goods basket for which government sets maximum prices a few yeas ago did help, business cannot be forced to sell unprofitable products. Even these rates will therefore at some point follow inflationary trends.
Gross domestic product (GDP) is also a way to index benefits, as should be the case with the General Old Age Provision AOV in Curaçao. But despite official figures to the contrary, that island’s government now claims no real growth occurred since 2021 and will approve only a one-time pension hike, not retroactive adjustments.
It’s a complicated matter and food for thought going forward. Locally much depends on how the hospitality industry performs. Elsewhere in this edition Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Griha Heyliger-Marten thankfully says the upcoming high season looks very good.
One thing to keep in mind is that minimum wages are meant as starting rather than permanent salaries. Employees ought not stay at that level forever and people also tend to work better when making ends meet.
