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HRsolution » COUNTRIES » Aruba

Population

Aruba has about 107,000 inhabitants. The population is ethnically diverse, primarily consisting of descendants of the indigenous Arawak, Europeans, and Africans. There are also smaller communities of Latin American and Asian immigrants.

Capital

The capital of Aruba is Oranjestad. This city is the political and economic center of the island, as well as an important port for cruise ships and trade.

Economic Strength

Aruba’s economy is heavily reliant on tourism, which accounts for over 80% of its GDP. A large portion of the visitors are tourists from the United States and Europe. In addition to tourism, Aruba has a financial services sector, oil refineries, and limited agricultural production. Tourism provides the island with significant economic strength compared to other Caribbean nations, but it also makes the economy vulnerable to global economic crises.

Culture

Aruba’s culture is strongly influenced by Dutch, Latin American, and Caribbean traditions. The official languages are Dutch and Papiamento, a Creole language that developed from African, Portuguese, Spanish, and Dutch influences. Traditional music, dance, and festivals, such as the annual Carnival, play a vital role in cultural life. Aruba also has a rich history of Arawak natives, whose culture has left its mark on the island.

Currency

The official currency of Aruba is the Aruban Florin (AWG). Its exchange rate is fixed to the US Dollar (1 USD = 1.79 AWG). However, US dollars are widely accepted.

Health Insurance and Social Security System

Aruba has a well-developed health and social security system. Healthcare is provided through the AZV (Algemene Ziektekosten Verzekering) system, which grants all residents of Aruba access to medical services. This system is funded by contributions from employers, employees, and the government. Besides healthcare, there is a social security system that includes pensions, unemployment support, and disability insurance.

Employer Costs

Employers in Aruba are required to contribute to social security, which amounts to about 9% to 12% of an employee’s gross salary. These costs cover the social security system, including pension and health insurance.

Salaries and Bonuses

Wages in Aruba vary by sector. Salaries are generally lower in the tourism and service industries, while higher wages are paid in finance and highly skilled professions. There are no legally mandated bonuses, but Christmas bonuses or performance-based bonuses are common in many businesses.

Payroll

Payroll in Aruba typically includes the gross salary, social security deductions (health insurance, pension), income tax, and any other applicable deductions such as private insurance. Employers must provide employees with a detailed monthly pay slip.

Public Holidays

Aruba has several public holidays, including:

  • New Year’s Day (January 1st)
  • Good Friday
  • King’s Day (April 27th)
  • Labour Day (May 1st)
  • Independence Day (March 18th)
  • Christmas (December 25th)
  • Boxing Day (December 26th)
  • Carnival (varies).

Working Hours

The standard working hours in Aruba are 40 hours per week, typically spread over 5 workdays. Working hours can vary across industries, particularly in tourism, where shift work and weekend shifts are common.

Vacation

Employees in Aruba are generally entitled to at least 15 days of paid vacation per year. The length of vacation increases with the duration of employment. Additionally, employees are entitled to paid leave on national holidays.

Sick Leave

Employees who are sick and claim sick leave are entitled to sick pay, which is covered by the social security system. Depending on the case and the duration of the illness, employees continue to receive a portion of their salary. Employers cover the first few days of illness, after which social security takes over.

Termination/Severance

Termination regulations in Aruba are legally defined and depend on the length of employment. Employees are entitled to a fair notice period. Severance pay is possible, particularly in cases of long-term employment. This can be either contractually agreed upon or determined by labor laws. Terminations without just cause or in violation of notice periods may result in compensation or severance pay.
Overall, Aruba has a well-structured labor law system, shaped primarily by its well-developed tourism and service sectors.

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