Saba’s Government Administration Building in The Bottom.
SABA–Employees of the Public Entity Saba will receive the maximum benefit from the five-per-cent reduction of the employer’s premium per January 1, 2019.
In reality, the amount will be slightly less than five per cent, considering the pension premiums and some other employer’s cost that have to be taken into account. Setting an example, the Public Entity is urging Saba’s private sector to also have their employees benefit for the maximum amount.
The announcement of Dutch State Secretary of Social Affairs and Labour Tamara van Ark late October to structurally lower the employer’s premium in the Caribbean Netherlands per January 1, 2019, is good news for the employees of the Public Entity Saba, since the local government has decided the five per cent will go the civil servants for the full 100 per cent.
By reducing the employer’s premiums, companies can increase salaries without an increase of the wage cost. According to the Ministry of Social Affairs and Labour, the room for the employer to increase the wages lies between 3.4 per cent and 4.4 per cent. The idea is that employers have their employees benefit fully.
State Secretary Van Ark and the Public Entity are urging the private sector to pass on the savings to the employees on the island. Commissioner of Finance Bruce Zagers will invite the private sector to take part in a social dialogue which will take place shortly.
In order to fully pass on the five per cent to its employees, the Public Entity Saba is increasing the so-called equalization allowance (“vereveningstoelage”) that all civil servants receive, which is currently 9.5 per cent. Saba will increase this allowance to 13 per cent.
The Public Entity also proposed to Windward Islands Civil Servants Union (WICSU) to set the allowance at a minimum of US $200 per month, as this would have a more positive impact for civil servants in lower salary brackets.
Commissioner Zagers said that by setting the allowance increase at a minimum of $200, the Public Entity is making sure that the ones who need it the most will benefit the most.
“This increase is an improvement, but there is still more that needs to be done to improve the quality of life for our people,” said Zagers.
Per January 1, 2019, the legal minimum wage will also increase by five per cent, as will the old-age pension AOV, the “onderstand” and the allowance for widows, widowers and orphans.
Source: The Daily Herald https://www.thedailyherald.sx/islands/83884-saba-civil-servants-salaries-to-increase-as-per-january-1
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