Published On: Thu, Jan 2nd, 2014

No increase in pension payment on January 1

svb buildingWILLEMSTAD - This is the first time in years that the payment of the General Old Age Insurance (AOV) was not increased on January 1. This is evidenced by the announcement made ​​recently by the Social Insurance Bank (SVB).

As in 2013, the payment per January 1, 2014, was 862 guilders. Previously the AOV was increased according to the price index. Now the adjustment of the pension is set in the new Ordinance AOV of February 28, 2013, which stipulates that the increase is based upon the percentage of real economic growth for the month of August compared to the percentage of the real economic growth for the month of August of the previous year. The economic growth is based on data from the Ministry of Economic Development (MEO), which does not expect an economic growth for 2013. This is an estimate based on the first nine months of the year.

The Curacao Tax Inspector, as well as the SVB, announced that the premium income limit under the Ordinance AOV, starting January 1, 2014, is 100,000 guilders. The joint contribution of the AOV and AWW is 16 percent, of which at least 9.5 percent is borne by the employer. The maximum bonus payable is 16,000 guilders. If the premium income is more than 100,000 guilders per year then a 1 percent premium is charged over the rest. The employer does not have to pay that, as explained by the tax authorities.

Another increase is the income limit established for the General Insurance Special Medical expenses (AVBZ), which is now set at 444,204.90 guilders and incidentally mentioned for the first time on the list of the SVB. Previously this was done by the Bureau Medical Services (BZV) and collected by the Tax Collector.

Furthermore, the wage limit for Medical Provision and Retirement Provision was also increased.

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