Bonaire: Changes to wage tax rules for minimum wage employees

Payroll Pro HRM would like to inform you of important changes regarding the recent increase in the minimum wage in Bonaire.

The Tax Office of Bonaire has raised the minimum wage to $10.10 per hour.

However, the basic deduction, known as the "belastingvrije voet," has remained unchanged.

This adjustment has resulted in minimum wage employees becoming subject to wage tax.

In response, the Tax Office of Bonaire has decided to amend this situation. Effective immediately and for the remainder of 2024, minimum wage employees will be exempt from wage tax, provided they meet the following conditions:

1.     The employee's hourly rate is $10.10.

2.     The employee works a maximum of 40 hours per week.

3.     The employee is entitled to the tax-free allowance and claims this from the withholding agent in accordance with Article 8, paragraph 2, of the BES Wage Tax Act.

For our valued clients, Payroll Pro HRM released a special update to ensure that wage tax is not withheld from employees who meet the above criteria for the remainder of the year.

For clients who have paid wage tax for employees earning a gross hourly wage of $10.10 in July 2024, we are available to assist with the correction process to ensure that any overpaid wage tax is reversed.

To download the update for Payroll Pro HRM, click here.

Should you have any questions or require further assistance, please do not hesitate to contact us at +599 9 738 7067.