Social Security
General
Social security premiums are levied in connection with the wage tax. Aruba knows 5 different social security taxes:
- Old age pension and widow & orphans pension insurance.
- General health insurance.
- Sickness insurance.
- Accident insurance.
- Cessantia.
AOV/AWW (old age pension and widow & orphans pension insurance)
The total premium amounts to 13.5%, which premiums are due up to a maximum wage of AWG 65,000 (USD 36,313). Of this premium, 12.5% is for the AOV and 1% is for the AWW. The total premium is in principle divided between the employer (9.5%, of which 9% for the AOV and 0.5% for the AWW) and the employee (4%, of which 3.5% for the AOV and 0.5% for the AWW). The employer can however pay the employees’ part of the premiums tax exempt. The AOV/AWW premiums are only due until the employee reaches the age of 60.
AZV (general health insurance)
The total premium amounts to 11.5%, which premiums are due up to a maximum wage of AWG 85,000 (USD 47,486). The total premium is in principle divided between the employer (8.9%) and the employee (2.6%). The employer can however pay the employees’ part of the premiums tax exempt.
SVb (sickness insurance)
This premium is only paid by the employer. The premium amounts to 2.65%, which premiums are due up to a maximum wage of AWG 54,600 (USD 30,503).
SVb (accident insurance)
This premium is also only paid by the employer. The premium varies between 0.25% and 2.5%, depending on the risk of the work performed and up to a maximum wage of AWG 54,600 (USD 30,503).
SVb (cessantia insurance)
This premium is also only paid by the employer. The premiums amounts to AWG 40 (USD 22.47) per employee per year. The cessantia is in principle paid out upon dismissal of the employee by the employer. If the dismissal is due to acts of the employee, no cessantia is due.
Can WTS assist you further?
Should you be interested in more information or should you have plans to start a business on Aruba, our team of professionals is there to assist you with any questions you may have. You can reach us via the above mentioned contact information.