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BASIC COUNTRY FACTS

Montserrat

Plymouth Brades

  • English

4,992

Eastern Caribbean dollar

.ms

+1

Eastern Caribbean dollar

STATUTORY LABOR REQUIREMENTS

Probation Period

  • The probationary period shall not exceed six months for employees of the rank of supervisor and above and three months for all other employees.

Annual Leave

  • After each calendar year of continuous employment with an employer an employee shall be entitled to paid holiday leave on the following basis
    • employees with less than ten years’ service, to a minimum of two weeks’ paid holiday;
    • employees with ten years’ service and less than twenty years’ service, to a minimum of three weeks’ paid holiday; and 
    • employees with twenty years’ service or above, to a minimum of four weeks paid holiday

Public Holidays

  1. New Year's Day (1st January)
  2. St. Patrick's Day (17th March)
  3. Good Friday (10th April)
  4. Easter Monday (13th April)
  5. Labor Day (4th May)
  6. Whit Monday (1st June)
  7. Queen's Birthday (15th June)
  8. Emancipation Day (of Montserrat) (3rd August)
  9. Christmas Day (25th December)
  10. Boxing Day (28th December)
  11. New Year's Eve (31st December)

Maternity Leave

  • On the production of a certificate from a registered medical practitioner stating the presumed date of confinement, a female employee who has completed twelve months’ continuous employment shall be granted a period of maternity leave of three months with pay by her employer.

Paternity Leave

  • Where a female employee is granted maternity leave under this section, the husband or de facto spouse of the employee shall, upon application, be granted paternity leave for such period as requested in the application, but in any case not exceeding two weeks with pay, to be taken
    • during the period his wife or de facto spouse is on maternity leave; or 
    • not later than six months from the birth of the child

Sick Leave

  • After not less than thirteen weeks of continuous service with an employer, an employee shall be eligible to not less than twenty-four days of paid sick leave during each year of service.

Work Hours

  • The normal hours of work, inclusive of the meal interval, shall be eight hours and the standard workweek shall be forty hours.

Overtime

  • An employer shall pay his or her employee at the rate of at least 1½ times his or her basic rate of pay for work in excess of eight hours on any work day or in excess of forty hours in any week and double time his or her basic rate of pay where the employee works on a public holiday.
  • An employer shall not employ any person in excess of twelve hours in any period of twenty-four hours.

Notice Period

  • Except in the case of summary dismissal, the minimum notice required to be given by an employer to an employee to terminate the contract of employment where the employee has been continuously employed for thirteen weeks or more shall be: -
    • not less than one week if the period of continuous employment is thirteen weeks or more but less than two years; 
    • not less than two weeks if the period of continuous employment is two years or more but less than five years; 
    • not less than four weeks if the period of continuous employment is five years or more but less than ten years; 
    • not less than six weeks if the period of continuous employment is ten years or more but less than fifteen years; 
    • not less than eight weeks if the period of continuous employment is fifteen years or more.

Severance

  • Where an employee’s employment contract is terminated on grounds of redundancy, he or she is entitled to severance pay from his or her employer calculated as follows
    • where the employee has worked for more than one year but less than five years, he or she shall be paid two weeks’ pay for every year of completed service;
    • where the employee has worked for more than five years but less than ten years, he or she shall be paid 2½ weeks’ pay for every year of completed service; 
    • where the employee has worked for more than ten years but less than fifteen years, he or she shall be paid three weeks’ pay for every year of completed service; 
    • where the employee has worked for more than fifteen years, he or she shall be paid 3½ weeks’ pay for every year of completed service.

INCOME TAX

  • Income tax shall, subject to the provisions of the Income Tax Act, be payable at the rate or rates specified hereafter upon the income of any person accruing in or derived from Montserrat or elsewhere and whether received in Montserrat or not in respect of: -
    • gains or profits from any trade, profession or vocation, for whatever period of time such trade, profession or vocation may have been carried on or exercised; 
    • gains or profits from any employment, including the estimated annual value of any quarters or board or residence or of any other allowance or benefit granted in respect of employment whether in money or otherwise other than in respect of any passage to or from Montserrat granted for leave purposes; 
    • the annual value of land and improvements thereon used by or on behalf of the owner or used other than at full rental value by the occupier, for the purpose of residence or enjoyment, and not for the purpose of gain or profit, such annual value being deemed to be the gross rental value fixed under the Property Tax Act or 5% of the estimated market value of the property whichever is the greater; 
    • dividends, interest or discounts; 
    • any pension, charge or annuity; 
    • rents, royalties, premiums and any other profits arising from property; 
    • any annual gains or profits not falling under any of the foregoing heads
  • The rate of income tax for the years of assessment commencing on or after January 1, 1999 are as follows
    • On every dollar of the first $2,500 of chargeable income – 20 cents in the dollar; 
    • On every dollar of the next $6,000 of chargeable income viz. from $2,500 to $8,500 – 25 cents in the dollar; 
    • On every dollar beyond $8,500 of chargeable income – 30 cents in the dollar.

Income

Rate

On every dollar of the first $2,500 of chargeable income

20 cents in the dollar

On every dollar of the next $6,000 of chargeable income viz. from $2,500 to $8,500

25 cents in the dollar

On every dollar beyond $8,500 of chargeable income

30 cents in the dollar

DEDUCTIBLE EXPENSES

For the purpose of computing the chargeable income of any person there shall be deducted all outgoings and expenses wholly and exclusively incurred during the basic year by such person in the production of the income, including: 

    • sums paid by such person by way of interest on money borrowed by him, where the Comptroller is satisfied that the interest was paid on capital employed in acquiring the income; (Substituted by Act 9 of 1976) 
    • rent paid by any tenant of land or buildings occupied by him for the purpose of acquiring the income; 
    • any sum expended for repair of premises, plant and machinery employed in acquiring the income, or for the renewal, repair or alteration of any implement, utensil or article so employed; 
    • bad debts incurred in any trade, business, profession or vocation,
    • rates and taxes on lands or buildings (but not including income tax); 
    • any contribution to an approved pension or superannuation fund which is an ordinary annual contribution
    • premiums paid on any insurance policy covering loss by fire, earthquake, hurricane, riot, civil commotion, flood, burglary, or other disaster on property used in acquiring the income upon which the tax is payable or on property upon the income from which or upon the value for the use of which the tax is payable; 
    • annuities or other annual payments whether payable within or out of Montserrat
  • Personal Allowance is as follows: -
    • $15,000 on any year of assessment commencing on or after January 1, 1999.

Deductible Expenses

Deductions
  • sums paid by such person by way of interest on money borrowed by him, where the Comptroller is satisfied that the interest was paid on capital employed in acquiring the income; (Substituted by Act 9 of 1976) 
  • rent paid by any tenant of land or buildings occupied by him for the purpose of acquiring the income; 
  • any sum expended for repair of premises, plant and machinery employed in acquiring the income, or for the renewal, repair or alteration of any implement, utensil or article so employed; 
  • bad debts incurred in any trade, business, profession or vocation,
  • rates and taxes on lands or buildings (but not including income tax); 
  • any contribution to an approved pension or superannuation fund which is an ordinary annual contribution
  • premiums paid on any insurance policy covering loss by fire, earthquake, hurricane, riot, civil commotion, flood, burglary, or other disaster on property used in acquiring the income upon which the tax is payable or on property upon the income from which or upon the value for the use of which the tax is payable; 
  • annuities or other annual payments whether payable within or out of Montserrat

Personal Allowance
  • $15,000 on any year of assessment commencing on or after January 1, 1999.

IMMIGRATION

Montserrat issues the following visas/permits

  • Tourist visa/ e-visa
  • Residence Permit
  • Work Permit

Tourist/ e-visa

  • A Montserrat eVisa is equivalent to a conventional visa, but no paper is inserted in your passport and there is no need for you to visit a British Consulate to submit an application.
  • Applications for eVisas are submitted online, verified online, and in most cases, eVisas will be approved and issued online within 24 Hours.
  • When submitting an application for an eVisa, you will need to provide Passport and Credit Card information.
  • Anyone with a valid passport who wishes to enter Montserrat, as a visitor or on business is eligible to apply.
  • In certain cases, where an invitation letter or other supporting documents are necessary to obtain a Visa, applicants will be informed via the email address they provide in the online application form.
  • Applicants for an eVisa should have a passport which would be valid for the duration of their trip abroad.

Residence permit

  • A Resident Permit is a permit which is granted to non-nationals, who are the owners of property in Montserrat.
  • Property owners are responsible for their own well-being while in Montserrat and for the well-being of family members in their care.
  • Property owners can only include immediate family members on their applications.
  • Application fees are non-refundable.
  • A resident permit is valid for one (1) year.

Work Permit

  • The Department of Labor has responsibility to process work permits and exemptions for working on island. 
  • Work permits are issued in accordance with the Immigration Act (CAP 13.01) Revised 2008
  • Every foreigner who wishes to work in Montserrat is required to obtain a work permit prior to taking up employment. 
  • They are generally granted to skilled professionals when no one in Montserrat can fill the special position. 
  • Generally, your employer will have to advertise your prospective job locally to make sure that no natives can take the position, that describe minimum qualifications and experience required.
  • If it is determined that no local inhabitants can fill the spot, then your employer must submit the application for the work permit. 
  • Your employer is to provide information about your work and educational experience, and why you have been chosen to fill this job as opposed to a local.
  • Work permits are approved by the Cabinet.

Type of Visa/Permit

Documentation

Validity

Eligibility

Tourist Visa
  • Completed application form
  • Valid passport
  • Passport photos
  • Invitation letter and other supporting documents if required

1 year
  • Anyone with a valid passport who wishes to enter Montserrat, as a visitor or on business is eligible to apply.

Residence Permit
  • Valid Passport
  • Proof of sufficient funds
  • Proof of property ownership
  • Other supporting documents

1 year
  • Applicant(s) must be the owner of property in Montserrat.
  • Applicant should not be a national of Montserrat.
  • Must have documentation of property ownership.

Work Permit
  • Completed application form
  • Valid passport
  • Employment contract
  • Proof of educational qualifications
  • CV

Varies
  • Foreigners can work in Montserrat with a work permit if no local are available to fill that position

WITHHOLDING TAX

Every non-resident company carrying on business in Montserrat shall be liable to withholding tax under section 40 of the Income Tax Code on the remitted profits of such business for any year of assessment to the extent provided by this section in addition to its liability to income tax as if such profits were profits derived by a wholly owned subsidiary of a non-resident company.

TERMINATION

  • An employer may terminate the employment of an employee where two medical practitioners certify that the employee is unfit to continue in employment because of incapacity of the mind or body which has lasted for at least six months and which is likely to be permanent.
  • An employer is entitled to dismiss summarily, without notice, an employee who is guilty of gross misconduct of a nature that it would be unreasonable to require the employer to continue the employment contract.
  • Where an employee is guilty of an offence in breach of his or her employment contract, or of any misconduct such that the employer cannot reasonably be expected to continue to employ him or her if it is repeated, the employer may, when taking disciplinary action, warn the employee in writing that repetition of the behavior will result in summary dismissal.
  • Where an employee is guilty of an offence in breach of his or her employment contract, or of any misconduct such that the employer cannot reasonably be expected to continue to employ him or her if it is repeated, the employer may, when taking disciplinary action, warn the employee in writing that repetition of the behavior will result in summary dismissal. 
  • Where the employee, after being warned in accordance with subsection (3), is guilty of a similar offence or misconduct in the following six months, the employer may terminate the employee’s contract without further notice. 
  • An employer who dismisses an employee under subsection (4) shall provide the employee with a written statement of the reasons for the action. 
  • The employer shall be deemed to have waived his or her right to terminate the employment of an employee for misconduct where he or she has failed to do so within six months after having knowledge of the misconduct. 
  • Where, after the probationary period has expired, the employee is not performing his or her duties in a satisfactory manner, the employer may give him or her a written warning to that effect. 
  • Where the employee, after he or she is warned pursuant to subsection (7), does not, during the following three-month period, demonstrate that he or she is able to perform and has performed duties in a satisfactory manner, the employer may terminate the employment contract. 
  • An employer shall not terminate the employment of an employee for unsatisfactory performance unless the employer has given the employee written warning pursuant to subsection (7) and appropriate instructions and training where required to correct the unsatisfactory performance and the employee continues to perform his or her duties unsatisfactorily for a period of three months.

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

  • Tax shall be charged, levied, and collected and paid annually for each year of assessment upon the total chargeable income of any person for the basic year. 
  • The basic year shall be the period of twelve months ending on the 31st December immediately preceding the year of assessment
  • Except in the case of deduction of tax at source under section 40, and on payment of emoluments, tax shall be payable on or before the thirtieth day of June in the year of assessment.

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