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Hiring in Guyana

Guyana, officially known as the Co-operative Republic of Guyana, is a country in South America. Georgetown is the capital and the largest city of Guyana. Agriculture and fishing are some of the largest sectors of Guyana. Guyana is rich in gold, bauxite, timber and other minerals. Its main trading partners are Canada, the United States, UAE, Japan, and Jamaica. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Guyana’s legal and tax regulations. Employment regulations including probation, holidays and termination are covered by the Labor Code. The Labor Code stipulates that employees are entitled to a probation period of 3 months. Residents are taxed on their worldwide income; non-residents are taxed on Guyana source income only. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with Guyana’s Labor Code and tax laws.

statutory labor requirements

Probation Period

  • A probationary period of three months is required by law unless the parties agree to a different period.

Annual Leave

  • Annual leave for those employed on a weekly, fortnightly or monthly basis is equal to one day for every completed month of service
  • Annual leave for daily paid employee is equal to one day for every twenty days worked 
  • For hourly paid employees, annual leave is equal to one day for every one hundred and sixty hours worked.

Public Holidays

  1. New Year's Day (1st January)
  2. Republic Day (23rd February)
  3. Holi
  4. Good Friday (10th April)
  5. Easter Monday (13th April)
  6. Labor Day (1st May)
  7. Indian Arrival Day (5th May)
  8. Independence Day (26th May)
  9. CARICOM Day (6th July)
  10. Eid al-Adha
  11. Emancipation Day (of Guyana) (1st August)
  12. Prophet's Birthday
  13. Diwali
  14. Christmas Day (25th December)
  15. Boxing Day (26th December)

Maternity Leave

  • The National Insurance Act allows for thirteen weeks’ maternity leave, starting not earlier than six weeks before expected confinement. 
  • In exceptional cases a further thirteen weeks is permitted. Maternity benefits paid is equivalent to 70% of the average insurable income.

Paternity Leave

  • Paternity or parental leave is not available.

Sick Leave

  • Sick leave is not an entitlement but employees are allowed both certified and uncertified sick leave. 
  • Payment for sick leave is made by the National Insurance Scheme after the third day of illness.
  • Most Collective Agreements require the employer to make up any shortfall.

Work Hours

  • Guyana has a 40-hour week over a 5-day period.

Overtime

  • For all hours worked in excess of the prescribed or agreed hours, payment shall be made at 1.5 times the basic hourly rate. 
  • Employees working at work-sites deemed a factory shall be paid a premium for all hours worked on a Sunday or Public Holiday.

Notice Period

  • The notice period is two weeks where the employee has been employed for less than one year and one month when employed for more than one year. 
  • A notice of termination shall not be given by an employer during any period of an employee's absence on authorized leave.

Severance

  • An employer is entitled to dismiss summarily without notice or payment of any severance or redundancy allowance or terminal benefit any employee who is guilty of serious misconduct.
  • On termination of his employment, an employee who has completed one year or more of continuous employment with an employer shall be entitled to be paid by such employer a severance or redundancy allowance equivalent to 
    • one week’s, wages for such completed year of service for the first five years Including the entitlement year
    • two weeks’ wages for each completed year of services after the fifth year and up to the tenth year
    • three weeks’ wages for completed year of service in excess of ten years up to a maximum of fifty-two weeks.

13th / 14th Month Pay

  • No
  • There is no statutory requirement to pay the 13th or 14th month salary.
  • There is annual leave paid, however this is different between organisations.

income tax

  • Individuals who are ordinarily resident or domiciled in Guyana are subject to tax on their worldwide income. 
  • Individuals who are not ordinarily resident or domiciled in Guyana are taxable on income accruing in or derived from Guyana, including income from any employment exercised in Guyana, regardless of whether the income is received in Guyana. 
  • However, earned income (including employment income) that arises outside Guyana or that arises to a person not ordinarily resident or domiciled in Guyana is taxable only when it is received in Guyana.
  • Taxable income from employment includes salaries, bonuses and any other allowances granted with respect to employment after allowing for appropriate deductions and exemptions. 
  • In the case of an expatriate, taxable income includes the value of employer-provided benefits, including accommodation and transportation.
  • Personal income tax is imposed at the following rates.

Taxable income

Tax rate (%)

Up to GYD560,000

28

Over GYD560,000

40

 

  • Payments to resident individual contractors in excess of GYD500,000 are subject to resident individual contractor tax. This tax is imposed as a withholding tax at a rate of 2% on each payment. This tax applies with respect to contracts for the providing or supplying of independent personal services for reward and includes the supply of labor and the hiring of equipment. 

The tributor’s tax is imposed at a rate of 10% on persons engaged in the gold and diamond mining industry, such as drivers, cooks and sailors, who are rewarded for their labor under the tribute system.

deductible expenses

Personal deductions and allowances

  • Personal allowance, which is the greater of GYD780,000 per year or one-third of the employee’s total income from all sources excluding income subjected to withholding taxes) 
  • Employee contributions to the National Insurance Scheme (NIS) 
  • Traveling allowances (deductible only if related the exercise of employment) •
  • Station allowance 
  • Entertainment allowance 
  • Subsistence allowance 
  • Meal allowance 
  • Security and telephone allowance (this is by the current policy of the Guyana Revenue Authority [GRA] and not provided for in a statute) 
  • Medical and dental expenses (deductible only for government employees) 
  • Gratuity (deductible only for government employees) 
  • Leave entitlement 
  • Severance pay 
  • Vacation allowance (up to a maximum of one month’s basic salary) 
  • The traveling, subsistence, vacation and entertainment allowances are deductible only if it is proven that the allowances were expended for the purposes for which the allowances were granted. 

Business deductions

  • Any expenses incurred wholly and exclusively for the purpose of producing income are deductible.

Deductible Expenses

Personal Deductions

  • Personal allowance, which is the greater of GYD780,000 per year or one-third of the employee’s total income from all sources excluding income subjected to withholding taxes) 
  • Employee contributions to the National Insurance Scheme (NIS) 
  • Traveling allowances (deductible only if related the exercise of employment) 
  • Station allowance 
  • Entertainment allowance 
  • Subsistence allowance 
  • Meal allowance 
  • Security and telephone allowance (this is by the current policy of the Guyana Revenue Authority [GRA] and not provided for in a statute) 
  • Medical and dental expenses (deductible only for government employees) 
  • Gratuity (deductible only for government employees) 
  • Leave entitlement 
  • Severance pay 
  • Vacation allowance (up to a maximum of one month’s basic salary) 

Business Deduction

  • Any expenses incurred wholly and exclusively for the purpose of producing income are deductible.

 immigration

  • In general, foreign nationals employed by companies in Guyana must obtain both entry visas (subject to certain exceptions mentioned above) and work permits.
  • The Ministry of Presidency, Department of Citizenship and Immigration, requires specific and detailed information before granting work permits to foreign nationals. 
  • The government requires that employment opportunities first be offered to Guyana nationals and residents before nonresidents. 
  • In general, CARICOM (Caribbean community) nationals may be given up to six months for employment purposes on entry into Guyana. 
  • If a CARICOM national has a Certificate of Recognition of Caribbean Community Skills 

Qualification by virtue of being a university graduate or meeting other specific criteria, the person may enter Guyana for a period of six months or some other indefinite period and work in Guyana. 

  • Similar rights are granted to the spouse and dependents of the CARICOM national. 
  • Non-CARICOM nationals may be granted up to three months for employment purposes on entry into Guyana. 
  • However, the Chief Immigration Officer may extend the initial period granted to two years.
  • If a foreign national is entering Guyana for the purpose of employment, a landing permit/employment visa must be obtained prior to arrival in Guyana. 
  • Subsequent to his or her arrival, a work permit must be obtained.
  • The following documents with respect to the employee must be submitted to the Department of Citizenship and Immigration to facilitate the landing permit/employment visa and work permit application processes: 
    • Landing permit/visa application form 
    • Work permit application form 
    • Copy of the applicant’s entire passport, together with the sponsor’s, if applicable (the passport must be valid for at least six months) 
    • Two passport-size color photographs 
    • Police clearance 
    • Medical report 
    • Credentials for the applicant (for example, certificates of qualifications)
  • Work permits are granted for a two-year period. 
  • If a traveling individual requires a visa but is unable to apply at any of Guyana’s missions or consulates, visas may be issued on arrival in Guyana.


Type of Visa/ Permit

Documentation

Validity

Eligibility

Landing permit/ Employment Visa

  • Landing permit/visa application form 
  • Copy of the applicant’s entire passport, together with the sponsor’s, if applicable (the passport must be valid for at least six months) 
  • Two passport-size color photographs 
  • Police clearance 
  • Medical report 
  • Credentials for the applicant (for example, certificates of qualifications)

6 months (CARICOM nationals;

3 months for Non CARICOM nations)

  • In general, foreign nationals employed by companies in Guyana must obtain both entry visas (subject to certain exceptions mentioned above) and work permits.

Work Permit

  • Work permit application form 
  • Copy of the applicant’s entire passport, together with the sponsor’s, if applicable (the passport must be valid for at least six months) 
  • Two passport-size color photographs 
  • Police clearance 
  • Medical report 
  • Credentials for the applicant (for example, certificates of qualifications)

2 years

  • In general, foreign nationals employed by companies in Guyana must obtain both entry visas (subject to certain exceptions mentioned above) and work permits.

value added tax

  • Goods and services are subject to a 14% VAT
  • Certain goods and services are exempt from VAT

VAT

Standard Rate

14%

Exempt Rate

0%

 

withholding tax

  • A final withholding tax at a rate of 20% is imposed on dividends, interest, royalties and management fees paid to nonresident individuals.
  • Withholding Tax is not imposed on dividends, interest, royalties and management fees paid to resident individuals

WHT

Dividends

20%

Royalties

20%

Interest

20%

Technical Service Fees

20%

termination

A contract of employment for an unspecified period of time may at any time be terminated 

    • by mutual consent of the parties
    • on any ground of redundancy
    • by either party 
      • for good or sufficient cause
      • by notice given to or served upon the other party
  • The notice period is two weeks where the employee has been employed for less than one year and one month when employed for more than one year. 
  • A notice of termination shall not be given by an employer during any period of an employee's absence on authorized leave.
  • An employer is entitled to dismiss summarily without notice or payment of any severance or redundancy allowance or terminal benefit any employee who is guilty of serious misconduct.
  • On termination of his employment, an employee who has completed one year or more of continuous employment with an employer shall be entitled to be paid by such employer a severance or redundancy allowance equivalent to 
    • one week’s, wages for such completed year of service for the first five years Including the entitlement year
    • two weeks’ wages for each completed year of services after the fifth year and up to the tenth year
    • three weeks’ wages for completed year of service in excess of ten years up to a maximum of fifty-two weeks

 statutory benefits

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, maternity leave, overtime pay, notice period, severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

payments and invoicing

  • The tax year in Guyana is the calendar year. In general, married individuals are taxed separately, not jointly, on all types of income. 
  • Every individual receiving income must file an income tax return by 30 April of the year following the tax year. 
  • Every individual receiving income from a trade, business, profession or vocation must file an income tax return for the tax year, even if the business operated at a loss. 
  • Employers must deduct tax from employees under the Pay-As-You-Earn system. 
  • Every self-employed individual receiving income must pay tax in four equal installments on or before 1 April, 1 July, 1 October and 31 December in each tax year. 
  • Each installment must equal one-quarter of the tax on taxable income for the preceding year.
  • The balance of tax due, if any, must be paid no later than 30 April of the following year.
  • Nonresidents must file tax returns for any year in which they derive income from Guyana sources. For the filing of returns, nonresidents follow the administrative rules that apply to residents.

ease of doing business

  • The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
  • Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
  • According to the World Bank Guyana ranked 134th in the World in 2019 in terms of ease of doing business.

employee accruals

   
Christmas Bonus%

0%

Christmas Bonus Over Vacations %

0%

Severance per Year %

Employees are entitled to severance pay that equals to one week of pay after one year of service (1.37% of annual salary)

Vacations % Employees are entitled to 12 days of annual leave (3.29% of annual salary)
Notice %

Employees are entitled to 30 days of notice period for one year of service or more (8.24%)

Christmas Bonus Over Notifications% 0%
Vacations Plus% 0%
Total percentage of Salary (yearly) The total employment accruals as a percentage of salary per anum are equal to 12.99%

employer accruals

Additional information (Country Accruals)

   
Social security 8.40%
Maternity leave 13 weeks
Vacations 3.29%
Description There is a requirement for compulsory participation under the National Insurance scheme. There is no exemption for the employee or the employer. Contributions at the following rates are compulsory and must be deducted by the employer and paid by the 15th day of the following month: Employee: 5.6% of insurable earnings. Employer: 8.4% of insurable earnings. The insurable earnings ceiling is GYD280,000 per month

 

Employer Accruals Additional information

    Employment Accruals
Annual Leave Annual leave for those employed on a weekly, fortnightly or monthly basis is equal to one day for every completed month of service This equals 3.28% (12/365 days) of annual income
Maternity Leave The National Insurance Act allows for thirteen weeks’ maternity leave, starting not earlier than six weeks before expected confinement.
In exceptional cases a further thirteen weeks is permitted. Maternity benefits paid is equivalent to 70% of the average insurable income.
This equals 70% of 25% (13/52 weeks) of annual income
Overtime For all hours worked in excess of the prescribed or agreed hours, payment shall be made at 1.5 times the basic hourly rate. Depends on the number of overtime hours worked
Severance On termination of his employment, an employee who has completed one year or more of continuous employment with an employer shall be entitled to be paid by such employer a severance or redundancy allowance equivalent to
• one week’s, wages for such completed year of service for the first five years Including the entitlement year
• two weeks’ wages for each completed year of services after the fifth year and up to the tenth year
• three weeks’ wages for completed year of service in excess of ten years up to a maximum of fifty-two weeks.
This equals 1.92% (1/52 weeks) of annual income
Social Security Contributions to the NIS must be made at the following rates on maximum monthly insurable earnings of GYD256,800:
• For employers: 8.4%
This equals 8.4% of annual income

 

 

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