Employee insurance

Sickness insurance

In accordance with the National Ordinance Sickness Insurance, an employee who is unable to work due to illness is entitled to compensation, namely sickness compensation.

Sickness insurance ensures that an employee, who is unable to work due to illness, receives a part of his/her wage compensated (reimbursed). The employee notifies the SVb on the first day of the sickness. Sickness insurance is executed by the SVb.

A disease is a situation where an employee is unable to perform his/her work for 24 hours (or for a longer period).

Employees with a monthly salary of Awg. 5.850,00 or less (this amount is valid as per July 1,  2016 and can be legally amended) are covered by sickness insurance.

The following categories of workers are not covered by sickness insurance:

  • Owner-manager (identified by the SVb as an employer);
  • An employee with a monthly wage of more than Awg. 5.850.00;
  • Spouse, dependent children and parents of an independent employer who does not receive pay or does receive a salary less than the minimum wage;
  • Domestic staff;
  • Captain or crew (sailors) on Aruban ships;
  • Civil servants or equivalent employees;
  • Home workers.

Sick leave pay (wage compensation)

An insured employee who is unable to work due to illness, is entitled to a compensation equal to 80% of his daily wage from the fourth day since calling in sick (illness notification). SVb does not pay any compensation for the first three sick days.

The right to sickness compensation for the same cause of disease expires after two years. This two years period starts from the first time the employee reports sick to SVb for this specific sickness.

To be considered for compensation, the employee must comply with the following requirements:

  • The employee must be registered at the SVb.
  • The illness for which the employee calls in sick did not exist prior to entering into employment.
  • The employee must meet the sickness notification requirements.

The employee is not entitled to compensation if the illness can be attributed to his/her intentional act or gross negligence, or to the use of alcohol or intoxicants.

Compensation during maternity leave

A female employee on maternity leave is entitled to a compensation of 100% of her daily wage. The employee is entitled to up to 12 weeks of leave. SVb compensates a leave of up to 12 weeks. The employee can divide the leave in 4 to 6 weeks before giving birth and the rest of the 12 weeks after childbirth.

To be considered for maternity leave, the female employee:

  • Must be registered at the SVb.
  • Must inform the SVb of her wish to make use of the right of compensation; at least two months before the start of the maternity leave, thus at least three months before the estimated date of birth.
  • Must submit a written statement from a doctor or midwife regarding the estimated date of birth.

Sickness insurance premium

SVb collects 2.65% of the employee's gross wage. This premium is paid fully by the employer. It is prohibited by law for the employee to pay this premium or to deduct this amount from his/her wage.

For more information you may consult the National Ordinance Sickness Insurance (AB1993no. 24).

Accident Insurance (OV)

Regardless of his income (also if above Awg 54,600), the employer must insure each employee for on-the-job accidents. The contribution rate is not standard, but differs from industry to industry. Employers pay between 0.25% and 2.5% of the employee's salary up to a maximum annual income of Awg 54,600.00. (Since January 1, 2009)

The monthly contribution has to be transferred by the employer before the 15th of the following month to the Sociale Verzekeringsbank (SVb).

For more information, visit the website of the Social Security Bank of Aruba (SVb): www.svbaruba.org/