Customary wage

Published on June 25, 2025

As of January 1, 2023, individuals who have a substantial interest (25% or more of the shares, either themselves, with their spouse or other relatives up to the second degree) in the employer (so-called “director major shareholders”, or in Dutch: “directeur groot aandeelhouders”) will fictitiously earn a salary that is at least the highest of the following:

75% of the wage of the most comparable employment;
Wage of the highest paid employee in the company or a related entity;
AWG 48,000.
If the substantial interest holder is the director of more than one related entity, the fictitious wage only applies once (and not per entity).

If it can properly be proven that a lower wage is applicable for similar functions when no substantial interest is present, the lower wage may suffice.

For start-ups, the minimum wage is considered to be the minimum fictitious wage. This is only applicable in the year of incorporation, and the subsequent three (3) years.

The fictitious wage does not count for (i) entities of which the profit is exempted (e.g. pension funds), (ii) entities which do not participate in the economic exchanges of Aruba and have an exemption from the Central Bank of Aruba, and (ii) non-resident individual directors or supervisory board members.

Do you need more clarification regarding the customary wage Aruba? Do not hesitate to contact us. We will be happy to help you.