Improvement of livelihood security

Every year, the statutory minimum wage as well as social relief ‘Onderstand’, the AOV (state pension) benefit and the AWW (widow and orphan) benefit are adjusted based on the consumer price index in the third quarter of the previous year. In the third quarter of 2020, the CPI change was -4.8 percent on Bonaire, -3.3 percent on St Eustatius and -1.6 percent on Saba. The negative price index was due to government subsidies on electricity, water and internet connections as of 1 May 2020. These resulted in a fixed usage tariff of 0 US dollars for electricity and water and a monthly 25 dollar discount for fixed internet connections. This means that there was deflation. As a result, the Ministry of Social Affairs and Employment (SZW) decided not to index minimum wages and benefits for 2021.

The child benefit was raised by 2.4 percent because of funds made available in the European Netherlands to increase the maximum child budget for families with three or more children. Since the Caribbean Netherlands does not have a child budget, it was decided to increase the child benefit instead. Including that increase, the child benefit is currently 85 US dollars per month per child on Bonaire, 87 US dollars on St Eustatius and 86 US dollars on Saba.