The Global Employer's Guide to Hiring in Aruba

Say your engineering team needs another experienced software developer, or your support squad could use reinforcement. Somewhere in the Caribbean, on an island roughly 20 miles long, there's a talent pool you probably haven't considered yet. Aruba has well  over 54,500 employed professionals. Many of them  speak four languages fluently, mainly Dutch, Papiamento, English, and Spanish.

That multilingual capability matters when you're building distributed teams that serve global markets. But the real story is what's happening beneath the surface. According to  Hubstaff's global hiring data , Aruba showed 100% growth in organizations hiring remote talent. The island maintains an unemployment rate of  around 4% , signaling a stable, educated workforce in a region where remote work infrastructure has matured rapidly.

Tech companies expanding into Latin America and the Caribbean often overlook smaller markets. They focus on Brazil, Mexico, or Argentina. However, Aruba is different; it has a compact, well-connected workforce with very high English proficiency rates and ties directly to North American and Latin American business cultures. The Island of Aruba created a specific  One Happy Workcation program to attract remote workers. This gives you an idea of how serious Aruba is regarding  distributed work .

The Island of Aruba's labor market

Aruba has a population of over 108,000 people, with an  employment rate of 60.8% . That's tight labor market territory, which can mean tough competition for skilled talent. The island maintains high-speed fiber-optic and cable internet infrastructure, providing reliable connectivity in both urban and residential areas. That tech foundation supports video conferencing, cloud access, and data-intensive  remote work . Higher education comes through the University of Aruba, which offers degrees in Law, Accounting, Finance and Marketing, Tourism Management, and Arts & Science.

Tourism dominates the economy, accounting for nearly  75% of Aruba's GDP. It directly or indirectly supports over 80% of the island's jobs. Hospitality, food services, and cruise industry roles make up the bulk of employment. But Aruba's government has been  pushing diversification into technology, financial services, and renewable energy. Those sectors are growing and creating demand for IT professionals, systems analysts, developers, and business experts.

Most business activity centers in Oranjestad, the capital and main commercial hub, and San Nicolas, which has strong connections to logistics and port-related industries. The  Barcadera Business Park has emerged as a modern logistics and business center with proximity to the international airport. But for distributed teams, location matters less than connectivity and Aruba delivers on that front.

Language proficiency gives Aruba the real edge. Dutch and Papiamento are official languages, but English and Spanish are widely spoken across the workforce. The average IT specialist in Aruba earns  around AWG 31,520 annually (approximately US$17,500). That positions Aruba competitively within the Caribbean region for labor costs. Salary growth tends to be moderate and tied to inflation, but benefits packages often include health insurance, pension plans, and professional development.

How to hire employees in Aruba

You have two main paths when hiring talent in Aruba. Each comes with its own timeline, costs, and compliance requirements.

Establishing a legal entity in Aruba

Setting up a local entity means registering your company with Aruba's  Chamber of Commerce and establishing a legal presence on the island. You'll need to navigate corporate registration, secure a local business address, and set up payroll systems that comply with Aruban labor laws.

This route gives you full control over operations but requires significant upfront investment in legal fees, accounting infrastructure, and ongoing administrative overhead. The process typically takes several months from start to finish. It makes sense if you're planning to build a substantial team in Aruba or establish long-term operations there.

Working with an Employer of Record (EOR) in Aruba

An EOR acts as the legal employer on paper while you manage your team. The  EOR handles payroll, tax withholding, benefits administration, and compliance with local employment regulations. You avoid the time and  expense of setting up a local entity. This option works well for companies testing the market, hiring one or two specialists, or building distributed teams without the burden of managing multiple legal entities across different countries. Speed is a huge plus here—an EOR in Aruba can typically onboard local employees within days rather than months.

Employment contracts in Aruba

Aruba has well-defined laws regarding employment, providing a solid foundation for businesses to hire and operate. Employers are required to have a written  employment agreement with all employees that outline the key elements of the role, such as job title and duties, location of work, number of hours worked, compensation (salary), and the length of time an individual will be employed. Because  indefinite contracts are very common in Aruba, fixed-term contracts are permitted to be extended. However, if they are extended too frequently, they are considered to be permanent contracts under Aruban Law. 

Clearly defining the parameters of an employment relationship at the outset provides the legal basis for employers to establish clear guidelines. It also establishes expectations for new hires joining distributed teams where individuals may come from vastly different cultures. Aruba allows probationary periods for employers, however, they are required to define them in writing and the length of time should be reasonable. Employers are incentivized to make thoughtful hiring decisions versus making quick, short-lived hires.

Working hours, holidays, and leave

The typical work week in Aruba is capped at 40 to 45 hours per week depending upon the industry, and includes maximum allowable hours per day and regular breaks. Additionally, overtime work is subject to regulations that dictate premium pay or compensatory time off in lieu of extra pay, which is particularly important to many remote and  flexible work arrangements where hours can be unusual.

Given Aruba’s Dutch roots, the country follows all public holidays that are recognized throughout the Netherlands, however Aruba also has some of its own public holidays. Global employers should be mindful of accommodating these holiday closures to avoid creating peak workload times. 

Aruba celebrates  11 governmental-recognized holidays , during which local employees typically receive paid time off and paid sick leave under labor and social security regulations. These regulations are particularly relevant to remote and flexible work arrangements, including tech-based teams where employees do not always work traditional hours and may be expected to perform tasks during non-traditional hours.

Employee benefits and social contributions

The benefits story in Aruba starts with a robust mandatory floor. Employees participate in social security schemes based on the Social Security Bank Aruba ( SVb Aruba ) that cover old-age pensions, disability, sickness benefits, and accident insurance. Contributions are shared between employer and employee, with the employer handling withholding and remittance. This safety net gives a baseline of security that many remote workers value as much as salary.

On top of that, competitive employers raise the bar with  supplemental employee benefits that fit a distributed mindset. Common extras include:

• Supplemental health insurance or upgrades beyond statutory coverage.
• Training budgets for digital skills, cloud certifications, or language learning.
• Remote work allowances for home office setups or connectivity.

These benefits speak directly to Aruba’s growing cohort of tech-savvy professionals who expect development opportunities and flexibility, not just a paycheck.

Payroll and taxation in Aruba

Managing payroll in Aruba appears simple on the surface but complex when it comes to specifics.  Payroll must be submitted at least once each month, in Aruban Florin or another agreed-upon currency, with detailed pay statements that list  gross income , withholdings, and net pay. Income taxes are determined based on a progressive tax system, ranging from  0% to 52% depending on the income bracket. Employers are responsible for deducting income taxes from their employees' salaries and submitting those amounts to the relevant authorities.

That means missteps in classification or rate calculation can trigger compliance risks for a global team. Employers also need to account for employer-side contributions to social insurance and, in some cases, additional levies linked to sector or wage levels. Many international companies manage this by centralizing payroll rules in one system, or work with  EOR providers to handle payroll, administer benefits, and draft employment contracts.

Employee vs. contractor classification

Assessing employee versus independent contractor status in Aruba is not a vibe check. It rests on legitimate legal criteria that look at control, integration in the business, and dependency. An employee typically works under the employer's direction, uses their tools, and has a more fixed schedule and ongoing obligations. A contractor tends to operate with more autonomy, can serve multiple clients, and uses their own tools. While global employers can minimize overhead by labeling their hires as contractors,  misclassification can have substantial consequences.

The  penalties of misclassifying employees as contractors can lead to retroactive taxes, social security adjustments, and penalties, which hit hard for global teams that scale quickly. For distributed tech roles, it helps to zoom in on how the work actually runs in practice. Many companies use  risk assessment tools , checklists, and internal policies to ensure hiring managers remain compliant with legal standards.

Termination and severance in Aruba

Termination in Aruba is less “at will” and more “show your work.” Employers usually need prior approval from the labor authority or a court to end an employment contract, except in very narrow cases such as serious misconduct. That structure pushes companies to be deliberate. Performance concerns need documentation, clear expectations, and real opportunities to improve. It fits well with a global culture that values feedback and transparency.

Severance rights are standard practice. According to  Aruba's government , an “employee whose employment has been terminated for reasons other than his fault is entitled to a layoff compensation,” calculated as follows:

• One week pay per each year between 1 and 10 years of service;
• One-and-a-quarter week's pay per each year between 11 and 20 years of service;
• Two weeks' pay for each year of service above 20 years.

Many employers implement structured performance review cycles and regular check-ins so nothing comes as a surprise. In remote or  hybrid work models , this also means being intentional about written feedback and documented agreements on role expectations.

Work permits and immigration

For most foreign nationals, working in Aruba requires a residence permit and  work permit from the Department of Integration and Management of Foreigners ( DIMAS ), tied to a specific employer.  The employer typically sponsors the process and must demonstrate a genuine need for the role, often showing that suitable local candidates were not available. Timelines matter, especially if your team is eager to get someone started.

For globally distributed companies, there are a few things to look out for:

• Whether the role can remain fully remote, with the person employed in their home country.
• Whether a local Aruban hire plus a short-term business visit pattern works better.
• Whether a full relocation to Aruba fits the team's long-term plans.

The right route depends on your risk tolerance, your talent priorities, and how tightly the role must connect to the island's legal and tax framework.

How Pebl helps hire in Aruba

If Aruba is in your sights, you’ve got a few options. If you’ve got the time and money to spend, you could go through the complex process of opening a legal entity in the country—just don’t plan on being up and running for a few months.

If you want to move fast, partner with Pebl.

Our  global EOR services operate in Aruba and 185+ countries worldwide. We offer a compliant, fully managed platform to employ talent while keeping all your other global hires on one system. Your teams get a consistent experience across borders, and you get peace of mind knowing that our experts are handling the finer points of labor laws in Aruba. To learn more,  contact us today.

FAQs: Hiring in Aruba

Hiring across borders brings questions. Some are tactical, like salary benchmarks or entity setup. Others are cultural, like how teams really work day-to-day. Here are answers to the ones that come up most often when global employers look at Aruba.

What is the work culture like in Aruba?

Aruba’s work culture combines a strong community focus with a service-driven approach influenced by the island’s tourism and hospitality industry. Workers generally value  work-life balance , respect and open communication—all values that fit well with teams that operate remotely and place a strong emphasis on flexibility and trust.

Can I hire in Aruba without a local business entity?

Yes. By partnering with an employer of record, you can  hire compliantly in Aruba without registering a local entity. The EOR acts as the legal employer, managing contracts, payroll, and compliance, while you retain full control over the employee's role, responsibilities, and performance.

What jobs are in high demand in Aruba?

High demand for software developers, cybersecurity, and data analysts exists due to investments being made in digital infrastructure in Aruba. In addition to these areas, digital marketing specialists, accountants, customer service representatives and hospitality managers continue to see  high levels of demand . Hybrid and remote positions are also highly sought after. Due to this level of competition for skilled candidates, competitive salaries and opportunities for career advancement and development are critical to attracting and retaining talent.

What is a good salary in Aruba?

The average salary in Aruba sits around  AWG 44,000 (Aruban florins) per year, which is roughly US$24,500. A good salary that attracts skilled professionals typically ranges from AWG 60,000 to AWG 80,000 annually (approximately US$33,000 to $44,500), depending on role complexity, experience, and sector. Tech and finance roles often command higher figures, especially for candidates with specialized skills or bilingual capabilities.

Can I work in Aruba as a U.S. citizen?

Yes. However, you will need to obtain a work permit sponsored by your Aruban employer prior to commencing work. If you are employed in Aruba for less than 90 days as part of a remote work arrangement with a non-Aruba employer, you may be eligible for the One Happy Workation program. For longer term employment arrangements, however, you will require formal  work authorization .

Disclaimer: This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free. 

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