Employer of Record in Curaçao

An Employer of Record (EOR) in Curaçao helps you hire employees in the country without setting up a local entity. This means you can build a team in Curaçao while the EOR handles all the legal and HR responsibilities. An EOR, like Rivermate, becomes the legal employer for your team members, managing everything from payroll and taxes to benefits and compliance with local labor laws.

How an Employer of Record (EOR) Works in Curaçao

Using an EOR simplifies your expansion into Curaçao. Here is how the process typically works:

1. You Find the Talent. You recruit and select the best candidate for your team in Curaçao.
2. The EOR Hires Your Candidate. The EOR legally hires the employee on your behalf through a local, compliant employment contract.
3. Onboarding and HR Management. The EOR manages the complete onboarding process. They also handle all HR tasks, including payroll, tax withholding, and benefits administration, according to Curaçao's regulations.
4. You Manage Your Team. Your new employee works for you, just like any other team member. You manage their daily tasks and responsibilities.
5. Ongoing Compliance. The EOR stays up-to-date with Curaçao's labor laws to ensure you remain compliant.

Why use an Employer of Record in Curaçao

Expanding your business to a new country like Curaçao can be complex. An EOR simplifies the process, saving you time and money. You can enter the market quickly without the need to establish a legal entity, which can be a lengthy and expensive undertaking.

Here are some key benefits of using an EOR in Curaçao:

• Faster Market Entry. Hire employees and start operations in days, not months.
• Reduced Costs. Avoid the high costs associated with setting up a local company.
• Compliance Assurance. EORs are experts in local labor laws, so you don't have to be. They ensure your employment practices are fully compliant with Curaçao's legal framework.
• Simplified HR and Payroll. Let the EOR handle the administrative burden of payroll, taxes, and benefits.
• Access to Better Benefits. EORs can often provide your employees with more competitive benefits packages.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Curaçao includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Curaçao.

Hiring in Curaçao offers a unique opportunity to tap into a diverse and multilingual talent pool. The local workforce is often fluent in Dutch, Papiamentu, English, and Spanish. Before you start, it's important to understand the local labor laws to ensure a smooth and compliant hiring process. Foreign nationals will typically need a work permit, and the application for this is usually sponsored by the employer.

Employment contracts & must-have clauses

While oral employment agreements are recognized in Curaçao, a written contract is highly recommended for clarity. You can draft agreements in English, Dutch, or Papiamento. There are two main types of employment contracts:

• Indefinite-Term Contracts: These are standard contracts with no specified end date.
• Fixed-Term Contracts: These contracts are for a specific duration or project and have a maximum length of three years.

Your employment contracts should include these essential clauses:

• Employer and employee identification
• Workplace location
• Job title and description of duties
• Start date
• Contract duration (for fixed-term)
• Salary and payment frequency
• Working hours
• Paid leave entitlement
• Notice period for termination

Probation periods

You can include a probationary period in your employment contracts to assess a new hire's suitability. This must be agreed upon in writing. The maximum probation period is two months. During this time, either you or the employee can terminate the contract without notice or needing to provide a reason.

Here are the specifics for different contract types:

Working hours & overtime

The standard workweek in Curaçao is 40 hours, typically spread over five 8-hour days. For employees on a recurring schedule outside of regular office hours, the maximum is 45 hours per week, calculated over a four-week period.

Anything beyond the standard hours is considered overtime. The overtime pay rate is usually 150% of the regular hourly wage. For work on Sundays or public holidays, the rate often increases to 200%. You can also agree in writing to compensate overtime with time off instead of pay.

Public & regional holidays

Employees in Curaçao are entitled to paid time off for public holidays. If an employee works on a public holiday, they are compensated at a higher rate, typically 150% of their regular pay.

Here are the public holidays for 2025:

• New Year's Day: January 1
• Carnival Monday: March 3
• Good Friday: April 18
• Easter Monday: April 21
• Labor Day: May 1
• Ascension Day: May 29
• Flag Day: July 2
• Curaçao Day: October 10
• Christmas Day: December 25
• Second Day of Christmas: December 26

Hiring contractors in Curaçao

Hiring independent contractors in Curaçao can offer flexibility and access to specialized skills. Contractors are self-employed and responsible for their own taxes and social contributions. They are typically hired on a project basis and are not entitled to employee benefits.

It is crucial to correctly classify workers to avoid misclassification risks. If a contractor is deemed to be an employee, your company could face penalties, including back taxes and social security contributions. An Employer of Record (EOR) can help you mitigate this risk. An EOR ensures compliance with local labor laws, manages payroll and taxes, and helps you create legally sound contracts. This allows you to work with talent in Curaçao without the administrative burden and legal risks.

In Curaçao, handling compensation and payroll means navigating a system with specific rules for pay frequency, taxes, and social contributions. You need to understand these local requirements to pay your team accurately and stay compliant. This involves everything from calculating withholdings to making timely payments to the tax authorities.

Payroll cycles & wage structure

The most common payroll cycle in Curaçao is monthly. You will typically pay your employees once a month, usually near the end of the month. Some companies, especially larger ones or those with hourly workers, might pay bi-weekly.

Your pay structure must meet the island's minimum wage requirements. As of early 2023, the minimum hourly wage for workers 21 and older is 11.28 guilders. This translates to a monthly minimum of 1953.70 guilders for a standard 40-hour workweek.

Beyond the base salary, it is common practice to offer additional compensation. Many employees in the private sector expect a 13th-month salary, which is usually paid in December. A holiday allowance, often equal to 8% of the annual salary, is also a typical benefit, paid out before the summer.

Overtime & minimums

For any hours worked beyond the standard 40-hour workweek, you must pay overtime. The typical overtime rate is 1.5 times the employee's regular hourly wage. Before assigning overtime, you need to get written consent from your employees. There are also limits on the maximum number of overtime hours an employee can work per week.

Employer taxes and contributions

As an employer in Curaçao, you are responsible for contributing to several social security funds on behalf of your employees. These contributions are calculated as a percentage of the employee's gross salary.

Employee taxes and deductions

You must withhold taxes and social security contributions directly from your employees' salaries. This is done through a Pay As You Earn (PAYE) system.

Here are the employee contributions:

In addition to these social security contributions, you will withhold wage tax based on a progressive scale.

In Curaçao, providing good benefits and leave is key to attracting and keeping great employees. The law sets the minimum, but many companies offer more to stay competitive. Understanding these rules is essential for managing your team on the island. This guide breaks down what you need to know about leave, holidays, and benefits in Curaçao.

Statutory Leave

Curaçao law requires employers to provide several types of paid leave.

• Annual Leave: You must give employees paid vacation time. The amount is at least three times the number of workdays in a week. For someone working a five-day week, that means 15 days of paid leave.
• Sick Leave: Employees are entitled to paid sick leave. After the third day, they may receive at least 80% of their daily wage, which is covered by social security.
• Maternity Leave: Female employees get 14 weeks of paid maternity leave. This can start two to six weeks before the due date and last eight to twelve weeks after birth.
• Paternity Leave: Fathers are entitled to 5 days of paid leave after the birth of a child.

Public Holidays & Regional Holidays

Employees in Curaçao get a paid day off for public holidays. If they have to work on a holiday, they are typically paid at a higher rate.

Typical Supplemental Benefits

Beyond the legal minimums, many employers offer extra benefits. Here’s a look at what's required by law versus what's commonly offered as a perk.

How an EOR Can Help with Setting Up Benefits

Setting up a competitive benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already understands the local laws and employee expectations in Curaçao. They handle the administrative work of managing statutory and supplemental benefits. This includes everything from enrolling employees in social security to managing payroll deductions for pension plans.

Using an EOR ensures you comply with all local labor laws from day one. It also helps you create a benefits package that attracts top talent in the Curaçao market. You can focus on your business goals while the EOR takes care of the HR details.

When your time with an employee in Curaçao comes to an end, you need to follow a specific process. Navigating local labor laws is key to a compliant and smooth offboarding experience. The rules are in place to protect both you and your employee. Understanding these requirements helps you avoid legal issues and financial penalties.

Notice Periods

When you terminate an employment contract in Curaçao, you must provide a minimum notice period. This period depends on how long the employee has worked for your company.

You must give this notice in writing. The termination date is typically the end of the calendar month. Keep in mind that employment contracts or collective labor agreements can specify longer notice periods.

Generally, you need approval from the Director of the Ministry of Social Development, Labor, and Welfare before terminating a contract. Without this approval, the termination can be considered void. This approval is not needed for termination by mutual consent or for an immediate dismissal due to an urgent reason.

Severance Pay

In Curaçao, employees are usually entitled to severance pay, known as "cessantia," if they are dismissed without fault of their own. The amount is based on the employee's years of service.

Here is how you calculate severance pay:

• First 10 years of service: 1 week's wages for each year of service.
• 11th to 20th year of service: 1.25 weeks' wages for each year of service.
• Beyond 20 years of service: 2 weeks' wages for each year of service.

An employee must claim their severance pay within one year of their termination date.

How Rivermate Handles Compliant Exits

Navigating the details of termination in a different country can be complex. We handle the entire process to ensure you stay compliant with all local laws.

Here’s how we help:

• Ensure Correct Procedures: We follow all legal requirements for termination, including obtaining necessary approvals.
• Calculate Final Pay: We accurately calculate notice periods, severance pay, and any outstanding vacation time.
• Handle Documentation: We manage all the necessary paperwork for a smooth and compliant exit.

We take care of the complexities so you can focus on your business.

Getting the right visas and work permits in Curaçao is essential. If you plan to work, you'll need a work permit and a residence permit. The process involves your employer sponsoring your application. It’s important to know that you generally need to wait for your permit to be approved before you can start working. The government wants to make sure that local talent has the first opportunity for jobs.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be a practical way to handle employment in Curaçao. An EOR acts as the legal employer for your team members in the country. This means they take care of payroll, taxes, benefits, and compliance with local labor laws.

Here’s what an EOR can typically do:

• Sponsor work permits. An EOR can sponsor the necessary work permits for your employees, which is a key requirement for foreign nationals.
• Handle local compliance. They ensure that all employment practices follow Curaçao's laws and regulations.
• Manage payroll and benefits. An EOR takes care of paying your employees and administering their benefits.

However, there are some realities to keep in mind:

• Labor market testing. Before a work permit is granted, the employer must show that they couldn't find a suitable candidate in the local job market.
• Processing times. Getting a work permit can take several months, so it’s important to plan ahead.

Using an EOR simplifies hiring in Curaçao by removing the need to set up your own legal entity in the country.

Business travel compliance

For short-term visits to Curaçao for business, the rules are more straightforward. You can typically visit for business purposes, such as meetings or conferences, on a tourist visa. This allows you to stay for up to 90 days.

Keep these points in mind for business travel:

• No local employment. You cannot perform work for which you receive payment from a local source.
• Digital Immigration Card. All international visitors must complete a Digital Immigration Card before arriving.
• Sufficient funds. You may need to show that you have enough money to cover your expenses during your stay.

If you plan to stay longer than 90 days or if your activities go beyond simple business meetings, you will likely need a work permit.