Aruba Food & Beverage Association warns of rising minimum wage costs

ORANJESTAD — The Aruba Food & Beverage Association (AFBA) is urging the government to carefully assess its plan to increase the monthly minimum wage from Afl. 2,007.05 to Afl. 2,683, the proposed subsistence level. While supporting decent wages, the association warns of financial consequences for businesses, employment and consumer prices.

According to AFBA's estimates, the increase could cost employers approximately Afl. 845 extra per minimum-wage employee each month, including additional employment expenses. For a business employing 50 minimum-wage workers, this could exceed Afl. 506,000 annually.

AFBA warns that businesses may respond by increasing prices, limiting hiring or reducing staff. Workers already earning above the minimum wage may also expect adjustments, adding further pressure to payroll costs.

The association calls for tax relief, reduced social contributions and gradual implementation. It also stresses that Social Dialogue must lead to meaningful agreements rather than becoming a formality.

AFBA says the central question remains: who will pay for the increase? Higher wages may not improve purchasing power if living costs rise simultaneously.