How to Hire Employees in Aruba (2026): Contracts, SVb and Pay

Aruba has a small, multilingual workforce and strict dismissal rules, so getting the employment setup right from the first hire matters. Here is what an employer needs to know in 2026.

Employment contracts

Employment terms are set in an individual contract and, where one applies, a collective labor agreement (CAO). Dismissal generally needs prior permission from the Department of Labor and Research (DAO), except for an urgent reason, mutual agreement or during a probation period.

Minimum wage in 2026

From 1 January 2026, Aruba has a statutory minimum hourly wage of AWG 11.58 for employees aged 18 and over, which also applies to part-time work. For a 40-hour week, that’s a minimum of AWG 2,007.05 a month.

Social security premiums (SVb)

• Old-age and survivors’ pensions (AOV/AWW): 15.5% in total, 10.5% from the employer and 5% from the employee.
• General health insurance (AZV): 10.5% in total, 8.9% from the employer and 1.6% from the employee.
• Premiums are calculated on wages up to AWG 85,000 a year.

Vacation

Employees are entitled to at least 15 vacation days a year.

Notice and cessantia

• Notice: it grows with years of service, starting from one pay period (for example one week for weekly paid staff, or one month for monthly paid staff) and adding one week per further year, up to 13 weeks.
• Cessantia: a one-off payment when employment ends through no fault of the employee, after the first full year: one week’s wage per year of service for years 1 to 10, 1.25 weeks per year for years 11 to 20, and two weeks per year after that.

Hiring foreigners

Foreign employees need the appropriate Aruban residence and work authorization before they start. Check the current requirements with the Aruban authorities for each hire.

Employer of record or your own company?

If you want to hire before you have a local entity, an employer of record can employ staff on your behalf. For a long-term team, local invoicing or contracts in your own name, it is usually better to set up your own company in Aruba and run payroll there.

Get help from Easyco

Easyco coordinates the company setup in Aruba up to the tax ID, and supports companies afterwards with tax, accounting, payroll and company compliance, including a registered office address. Contact us to discuss your hiring plans.