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Hiring in Saint lucia

Saint Lucia is an Island country in the Caribbean. Castries is the capital and the largest city of Saint Lucia. English is the official language and the East Caribbean Dollar is the official currency. Service sector dominates the economy. This includes offshore banking and tourism industries. Saint Lucia’s main trading partners are the United States, Trinidad and Tobago and China. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Saint Lucia’s legal and tax regulations. Employment regulations are covered by the Labor Code. Labor Code stipulates that employees are entitled to 14 days of annual leave. Residents are taxed on worldwide income; non-residents are taxed on St Lucia-source income. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with Saint Lucia’s Labor Code and tax laws.

statutory labor requirements

Probation Period

  • A new employee may be required to serve a probationary period of not more than twelve weeks or a shorter or longer period of time agreed to between the employer and the employee.

Annual Leave

  • Employees who have worked for 5 years are entitled to 14 days of paid annual leave
  • Employees who have worked for more than 5 years are entitled to 21 days of annual leave

Public Holidays

  1. New Year's Day (1st January)
  2. Independence Day (22nd February)
  3. Good Friday (10th April)
  4. Easter Monday (13th April)
  5. Labor Day (1st May)
  6. Whit Monday (1st June)
  7. Corpus Christi (11th June)
  8. Emancipation Day (of Saint Lucia) (1st August)
  9. Thanksgiving (5th October)
  10. National Day (13th December)
  11. Christmas Day )25th December)

Maternity Leave

  • Female employees are entitled to thirteen weeks of maternity leave and such leave shall, except in the case of premature delivery, be comprised of 
    • at least six weeks before confinement; and 
    • at least six weeks after confinement unless the employee chooses to return to work before that time

Paternity Leave

  • Paternity leave grants eligible employees up to five (5) days of paid leave following the birth of his child, or upon the initial placement or legal adoption of a child under age 18.

Sick Leave

  • The employer agrees to pay full wages for the first three (3) days of absence from work, provided that a medical certificate is presented on the third day, and provided that the employee who is sick and unable to report to work shall be obliged to make every reasonable effort to notify, in whatever way possible, his/her foreman or supervisor on the first day of absence.

Work Hours

  • An employer shall not require any employee to work for more than forty hours during any week, excluding overtime.

Overtime

  • An employer shall pay to an employee who works overtime an amount calculated at a rate of not less than one and one-half times the wage for each hour in respect of the overtime worked, or twice the wage for each hour in respect of the overtime worked on a Sunday, public holiday or, in respect of a shift worker, the worker’s day off.

Notice Period

  • A contract without reference to limit of time, except during the probationary period, may be terminated by the employer upon giving to the employee the following minimum periods of notice in writing 
    • one week’s notice if the period of continuous employment is more than twelve weeks but less than two years; 
    • two weeks’ notice if the period of continuous employment is two years or more but less than five years; 
    • four weeks’ notice if the period of continuous employment is five years or more but less than ten years; and 
    • six weeks’ notice if the period of continuous employment is more than ten years.

Severance

  • On termination of employment due to redundancy an employee who has completed no less than two years of continuous employment with his or her employer is entitled to be paid by the employer redundancy pay equivalent to 
    • one week’s basic pay for each completed year of service up to the first three years; 
    • two weeks’ basic pay for each completed year of service in excess of three years and up to seven years; or 
    • three weeks’ basic pay for each completed year of service in excess of seven years of service.

13th / 14th Month Pay

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • There is no evidence that it is customary to give bonuses.

income tax

  • Saint Lucia income tax is imposed on the following:
    • Income of an individual who is resident or ordinarily resident in Saint Lucia that accrues to the individual directly or indirectly from all sources whether in or outside Saint Lucia.
    • Income of an individual who is a resident, but is not ordinarily resident in Saint Lucia, that accrues to the individual directly or indirectly from all sources in Saint Lucia and income accrued from sources outside Saint Lucia to the extent that the income is remitted to Saint Lucia.
    • Income arising in Saint Lucia to a non-resident and income accrued from sources outside Saint Lucia to a non-resident to the extent that the income is received in Saint Lucia.
  • Tax rates on chargeable income are as follows.

Taxable income (XCD)

Tax on column 1 (XCD)

Tax on excess (%)

Over

Not over

0

10,000

-

10

10,001

20,000

1,000

15

20,000

30,000

2,500

20

30,001

and above

4,500

30

deductible expenses

Personal Allowances and Deductions

  • In determining chargeable income, a resident individual, upon due claim, is allowed the following deductions:

Allowances and deductions

XCD

Personal allowance

18,000

Personal allowance (pensioners)

24,000

Spouse allowance

1,500

Maintenance or alimony (under court order)

Actual

Child allowances

1,000 to 2,000

Deduction for higher education

5,000

Deduction for life insurance, other retirement benefits:

 

Premiums paid in Saint Lucia

8,000

Premiums paid outside Saint Lucia

3,000

Allowance for housekeeper (maintenance or relative)

200

Allowance for dependent relative

350

Owner-occupied property:

 

Mortgage interest (maximum)

18,000

Property taxes

Actual

Insurance premiums

Actual

Upkeep and maintenance

Up to 10,000

Purchase and installation of a new solar water heating system

Up to 6,500

Donations to charitable, religious, educational institutions (under deed of covenant for at least three years)

Actual

Medical expenses

Actual

Purchase of shares in building or cooperative societies

Up to 5,000

Investment in a Registered Home Ownership Plan

Up to 6,000

Interest on a student loan

Up to 3,000

Purchase of new shares in a resident public company

Up to 5,000

immigration 

  • Visitors to Saint Lucia must obtain a visa unless they come from one of the visa exempt countries or countries that can obtain a visa on arrival.
  • Cruise ship passengers visiting Saint Lucia for one day are exempted from obtaining visas.
  • Foreign nationals from some countries intending to visit Saint Lucia for business, pleasure or study are required to have a valid passport from their country and to obtain a valid Saint Lucian visa.
  • The following documents are necessary for a non-immigrant visa: -
    • 2 certified passport size photographs
    • A valid passport for up to six months
    • A return ticket to port of origin
    • Copy of travel itinerary
    • Proof of hotel/private accommodation
    • Letter of invitation (if invited by friend or relative with 2 certified passport size photographs)
  • Foreigners seeking employment in Saint Lucia must obtain a work permit
  • Before an Application for a Work Permit can be obtained a non- refundable fee of one hundred dollars ($100.00) is to be paid to the Accountant General at the Government Treasury. 
  • Payment is acceptable upon presentation of the necessary “A” Form duly completed by the Work Permit Officer. 
  • The Treasury Receipt is addressed to the Work Permit Officer who will then issue the Application.
  • Documents to be attached to the application are as follows: 
    • A Police record from the country where the applicant last resided 
    • Certified documentary proof of qualifications 
    • Trade License (where applicable) 
    • Copies of advertisements for the posts 
    • Evidence that income tax has been paid 
    • One (1) passport size photograph

Type of Visa/Permit

Documents

Validity

Eligibility

Work Permit

  • A Police record from the country where the applicant last resided 
  • Certified documentary proof of qualifications 
  • Trade License (where applicable) 
  • Copies of advertisements for the posts 
  • Evidence that income tax has been paid 
  • One (1) passport size photograph

Varies

  • Foreigners seeking employment in Saint Lucia must obtain a work permit

Non-Immigrant Visa

  • 2 certified passport size photographs
  • A valid passport for up to six months
  • A return ticket to port of origin
  • Copy of travel itinerary
  • Proof of hotel/private accommodation
  • Letter of invitation

N/A

  • Foreigners seeking to visit Saint Lucia for non-immigrant purposes such as studies, tourism, and business

 value added tax 

  • The standard VAT rate is 12.5%. 
  • There is also a 0% rate charged on certain goods and services. 
  • In respect of the hotel sector and related services, a reduced rate of 10% applies.

VAT

Standard Rate

12.5%

Reduced Rate

10%

Zero Rate

0%

withholding tax 

Dividends

  • St. Lucia does not levy withholding tax on dividends

Interest

  • The withholding tax on interest paid to a resident is 10%
  • The rate is 15% if paid to a resident of CARICOM and 25% to nonresidents

Royalties

  • The withholding tax on royalties paid to a resident is 10%
  • The rate is 15% if paid to a resident of CARICOM and 25% to nonresidents

Fees for Technical Services

  • The withholding tax on technical service fees paid to a resident is 10%
  • The rate is 15% if the fees are paid to a resident of CARICOM and 25% if paid to other nonresidents

Type of Payment

Residents

Nonresidents

 

Company

Individual

Company

Individual

Dividends

0%

0%

0%

0%

Interest

10%

10%

15%/25%

15%/25%

Royalties

10%

10%

15%/25%

15%/25%

Fees for technical services

10%

10%

15%/25%

15%/25%

termination

  • An employer is entitled to dismiss, summarily without notice, an employee who is guilty of serious misconduct of such a nature that it would be unreasonable to require the employer to continue the employment relationship. 
  • Serious misconduct includes but is not limited to 
  • willful disobedience of lawful orders given by the employer; 
  • repeated substantial neglect of duties; 
  • repeated absence from work without the permission of the employer or without reasonable excuse; 
  • refusing to follow health and safety measures instituted at work thereby endangering the health and safety of employees or members of the public; 
  • theft or willful damage of property of the employer or another employee at the work place; or 
  • conduct inconsistent with the fulfillment of the expressed or implied terms of the employee’s contract of employment.
  • A contract without reference to limit of time, except during the probationary period, may be terminated by the employer upon giving to the employee the following minimum periods of notice in writing 
  • one week’s notice if the period of continuous employment is more than twelve weeks but less than two years; 
  • two weeks’ notice if the period of continuous employment is two years or more but less than five years; 
  • four weeks’ notice if the period of continuous employment is five years or more but less than ten years; and 
  • six weeks’ notice if the period of continuous employment is more than ten years.
  • On termination of employment due to redundancy an employee who has completed no less than two years of continuous employment with his or her employer is entitled to be paid by the employer redundancy pay equivalent to 
  • one week’s basic pay for each completed year of service up to the first three years; 
  • two weeks’ basic pay for each completed year of service in excess of three years and up to seven years; or 
  • three weeks’ basic pay for each completed year of service in excess of seven years of service.

 statutory benefits

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

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Paternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

payments and invoicing 

  • The tax year in Saint Lucia is the calendar year.
  • Individuals with taxable income in excess of XCD 18,000 in any calendar year have to file a personal income tax (PIT) return by 31 March in the following year. 
  • Separate PIT returns are required from married persons where the other spouse has taxable income.
  • There is withholding of tax from salaries (pay-as-you-earn or PAYE) based on tax codes obtained when employees register with the Inland Revenue Department. 
  • Tax withheld by employers is paid to the Inland Revenue on a monthly basis.
  • Self-employed persons and individuals in partnerships are required to pay instalments by 25 March, 25 June, and 25 September.
  • Any additional tax due is payable with the PIT return by 31 March in the following year.

employee accruals

   
Christmas Bonus%

0%

Christmas Bonus Over Vacations %

0%

Severance per Year %

Employees are entitled to severance pay that equals to 1 week of pay after one year of service (1.37% of annual salary)

Vacations % Employees are entitled to 14 days of annual leave (4.12% of annual salary)
Notice %

Employees are entitled to 1 week of notice after one year of service (1.37% of annual salary)

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 6.86%

employer accruals

Additional information (Country Accruals)

   
Social security up to a maximum of XCD 250 5.00%
Vacations 7.40%
Description
The individual's share of National Insurance Corporation (NIC) contributions (for retirement, sickness, and disability benefits) is 5% of gross salary, up to a maximum contribution of XCD 250 per month (i.e. on a monthly salary of XCD 5,000). The employer matches the contribution and files monthly returns

Employer Accruals Additional information

    Employment Accruals
Annual Leave Employees who have worked for 5 years are entitled to 14 days of paid annual leave This equals 3.84% (14/365 days) of annual income
Maternity Leave Female employees are entitled to thirteen weeks of maternity leave and such leave shall, except in the case of premature delivery, be comprised of
• at least six weeks before confinement; and
• at least six weeks after confinement unless the employee chooses to return to work before that time
This equals 25% (13/52 weeks) of annual income
Paternity Leave Paternity leave grants eligible employees up to five (5) days of paid leave following the birth of his child, or upon the initial placement or legal adoption of a child under age 18. This equals 1.36% (5/365 days) of annual income
Sick Leave The employer agrees to pay full wages for the first three (3) days of absence from work, provided that a medical certificate is presented on the third day This equals 0.82% (3/365 days) of annual income
Overtime An employer shall pay to an employee who works overtime an amount calculated at a rate of not less than one and one-half times the wage for each hour in respect of the overtime worked Depends on the number of overtime hours worked
Severance On termination of employment due to redundancy an employee who has completed no less than two years of continuous employment with his or her employer is entitled to be paid by the employer redundancy pay equivalent to
• one week’s basic pay for each completed year of service up to the first three years;
• two weeks’ basic pay for each completed year of service in excess of three years and up to seven years; or
• three weeks’ basic pay for each completed year of service in excess of seven years of service.
This equals 1.92% (1/52 weeks) of annual income
Social Security The individual's share of National Insurance Corporation (NIC) contributions (for retirement, sickness, and disability benefits) is 5% of gross salary, up to a maximum contribution of XCD 250 per month (i.e. on a monthly salary of XCD 5,000). The employer matches the contribution and files monthly returns. This equals 5% of annual income

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