In order to hire an individual from Barbados, employers should have information about the employment laws and regulations in the country. This section provides such information.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
Employers must provide their employees with employment contracts in the official language of Barbados- English.
Probation Period
The probation period in Barbados may be stipulated in the employment contract. There are no statutory provisions.
13th Month Pay
There is no statutory law for the 13th-month pay.
Employee Benefits
The payroll cycle is monthly in Barbados.
The minimum wage in Barbados is BBD340 for 40 hour work week.
The overtime pay is 150% above the basic rate on a weekday. It increases to 200% when overtime falls on public holidays.
Employer Payroll Cost:
| Funds and Levies |
Contributions % |
| National Insurance |
6.75 |
| Non-Contributory |
2 |
| Unemployment |
0.75 |
| Employment Injury |
0.75 |
| Severance |
0.5 |
| Training Levy |
0.5 |
| Catastrophe Fund |
0 |
| Health Service Contribution |
1.5 |
| Total |
12.75 |
Employee Payroll Cost:
| Funds and Levies |
Contributions % |
| National Insurance |
6.75 |
| Non-Contributory |
2 |
| Unemployment |
0.75 |
| Employment Injury |
0 |
| Severance |
0 |
| Training Levy |
0.5 |
| Catastrophe Fund |
0.1 |
| Health Service Contribution |
1 |
| Total |
11.1 |
Employee Income Tax
| Annual Taxable Income |
Tax Rate |
| 0-50,000 BBD |
12.5% |
| Above 50,000 BBD |
28.5% |
VAT
The standard rate of VAT in Barbados is 17.5%.
The employment contract can be terminated by any party: employer or employee. However, the notice period is mandatory based on the years of service.
The notice period in Barbados is one week.
Severance pay
The Severance pay in Barbados is as follows;
| Years of Service |
Severance Pay |
| 10 years of service |
1-month pay |
| 10 years to 15 years |
1 and half month pay |
| More than 15 years |
2 and half months |
A foreign individual seeking employment in Barbados has to get a long-term visa to work in the country. The Long term visa is valid for three years, after which the individual has to renew it. The employment contract will be a primary document while applying for the visa.