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Barbados

Barbados

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Employer of Record (EOR) in Barbados

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Barbados Introduction

Barbados is an island nation that has been inhabited since the 13th century by the indigenous Kalinago people. In recent years, Barbados has become a popular tourist haven due to its pristine beaches, architecture, and Caribbean cuisine that draws over 1 million visitors per year.

Employment Terms

The current minimum wage in Barbados is $10.50 BBD per hour. The standard workweek consists of 40 hours, typically spread across five 8-hour days. Employees who work overtime are entitled to 1.5 times their regular hourly rate for those additional hours.

Types of Leave

Parental Leave

Pregnant employees are entitled to 12 weeks (84 days) of statutory maternity leave, which may be extended by an additional 6 weeks (42 days) if medically necessary (e.g., complications or confinement). Fathers are entitled to 3 weeks of statutory paternity leave. This leave can be taken consecutively within the first three months after the child’s birth, or split up, provided that at least two weeks are taken within the first three months and the remaining week is used before the child turns six months old.

Sick Leave

Employees become eligible for statutory sick leave after completing one year of continuous service with the employer. During the first year, the employer may, at its discretion, grant sick leave, although this is not legally required. Sick leave may be taken as needed for periods of illness and is not accrued for future use. A medical certificate is required for absences of three consecutive days or more, while self-certification is generally acceptable for absences of one to two days.

Paid Leave

There are 13 public holidays, and employees required to work on a public holiday are entitled to remuneration at twice their regular rate. Statutory annual leave accrues following the completion of twelve months of continuous service. Employees engaged under indefinite-term contracts are entitled to a minimum of three weeks (15 working days) of paid annual leave upon completion of the first year of service, increasing to four weeks (20 working days) after five years of continuous employment. Employees on fixed-term contracts of one year or longer are entitled to the same leave provisions, whereas those on contracts of less than one year receive annual leave on a pro-rated basis.

Termination Process

Process

Employment contracts can be terminated as long as written notice is provided and a reasonable justification is provided. Otherwise, an employee who is deemed to have been unfairly terminated might have to be reinstated.

Notice Period

Notice periods are governed by the Barbados Employment Rights Act.

  • For employees paid monthly with less than 10 years of continuous service: 1 month’s notice.
  • For employees with 10 to less than 15 years of continuous service: 1.5 months’ notice.
  • For employees with 15 or more years of continuous service: 2.5 months’ notice.
  • Severance Pay

    Severance pay under the Severance Payment Act (CAP 355A) is calculated based on completed years of employment within the 104 weeks preceding termination. Employees receive 2.5 weeks’ basic pay per year for up to 10 years of service, 3 weeks per year for service exceeding 10 but not more than 20 years, and 3.5 weeks per year for service exceeding 20 but not more than 33 years. Any employment beyond 33 years is not included in the calculation.

    Additional Information

    N/A

    Overview

    Language (s):
    English and Bajan Creole
    Currency
    Barbadian Dollar (BBD)
    Capital City:
    Bridgetown
    Population:
    287,000
    Cost of Living Rank:
    4th
    VAT (Valued Added Tax):
    17.5%

    Employer Taxes

    13%

    (estimated)

    ★  12.75% - National Insurance and Social Security Service (NISS)

    ★  0.25% - Resilience & Regeneration

    Download the country guide

    Frequently asked questions for hiring in Barbados
    How RemoFirst employs in Barbados

    It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so RemoFirst will hire and pay your employee on your behalf while you manage their daily duties. RemoFirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

    How employees in Barbados get paid

    Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).

    Full-time Employees vs Global Contractors

    Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

    Dependable support for employees

    Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.

    Where you pay less, and get so much more.

    Get international HR, compliance and payroll in 3 simple steps:
    1

    Find your global talent

    You've sourced a full-time employee or contractor located in a country where your company is not incorporated.
    2

    The best price guaranteed

    Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.
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    Leave the onboarding & admin to us

    Sit back and relax as we onboard your new team member and take care of their international payroll, HR, and compliance.