Hire Employees in Anguilla

Anguilla is a British Overseas Territory in the Eastern Caribbean.

Two routes exist. A local entity gives direct employment; an Employer of Record removes that setup and acts as legal employer.

Any individual, business or company that gainfully employs persons must be registered as an employer with the Social Security Board. Anyone working for themselves should register as self-employed.

The Board was established under the Social Security Act 1980 by Chief Minister the Honourable James Ronald Webster, to provide and manage a system of national insurance for Anguilla’s workers.

Social Security is payable at 11.5% of wages for 2026, with the employer entitled to deduct 5.75% from the employee’s earnings and paying 5.75% itself.

The ceiling is EC$7,000 a month, or EC$1,617 a week. Beyond that no further Social Security contributions are payable.

A separate Universal Social Levy applies, formerly the Interim Stabilization Levy, at 3% of gross salary for employees earning over EC$2,000 a month, which the employer matches at 3%. The levy applies on remuneration up to EC$12,000 a month.

So employer cost is 8.75% in the band where both apply, falling as each ceiling binds. Self-employed persons pay the full 6% levy on gross earnings above EC$2,000.

Break-even rule of thumb: EOR fees begin to exceed the running cost of an Anguillian entity somewhere between 12 and 20 employees. See EOR vs Entity.

Anguilla publishes its entire rate escalation, with an end point. That is unusual in the region and makes multi-year cost modelling simple.

Under the Contributions (Amendment) Regulations 2023, made under the Social Security Act, the rate rises from 10% of insurable earnings to 12% over a four-year period in quarter-point annual steps on each side:

2024, 5.25% each, 10.5% total. 2025, 5.5% each, 11% total. 2026, 5.75% each, 11.5% total. From 1 January 2027, 6% each, 12% total.

The Board’s stated purpose is to enhance the sustainability of the system while allowing a smooth transition for both employees and employers.

The ceiling has been assessed as adequate. The Premier told the House that the actuary concluded the ceiling now sits at a level where only around 10% to 12% of workers earn more than EC$7,000 a month, and that most of those are public sector employees with other pension arrangements.

So unlike several neighbours, the ceiling here is not visibly lagging, though it will still bind on most foreign-company hires.

Gross monthly salaries in East Caribbean dollars, which are pegged to the US dollar. Employer cost falls as salary passes the EC$7,000 and EC$12,000 ceilings in turn.

Benchmarks below are gross monthly salaries in East Caribbean dollars. Social Security caps at EC$7,000 a month and the levy at EC$12,000, so employer cost falls in two stages.

Payroll runs monthly, with Social Security to the Board and the Universal Social Levy to the Inland Revenue Department.

There is a filing obligation that applies even when nothing is payable. An employer is liable to file for an employee whose salary is less than EC$2,000 a month, below the levy threshold. Nil-liability does not mean nil-filing.

That is the requirement most easily missed, because a payroll built to calculate the levy will simply skip anyone under the threshold rather than filing for them.

Contributions are not payable for any week from Monday to Saturday the whole of which the employee receives Sickness or Maternity Benefit. So a full benefit week suspends the contribution rather than running alongside it.

Anguilla levies no income tax. Capital gains, dividends and interest are all untaxed, and capital itself is not taxed.

Social Security and the Universal Social Levy are the whole of the statutory payroll burden.

The governing statute is the Social Security Act (R.S.A. c. S45), originally the Social Security Act 1980, with contribution rates set by the Contributions (Amendment) Regulations 2023.

Contributions become payable in the week an employee attains the age of fifteen.

The Board is a statutory body responsible for administering social security in Anguilla, with a stated aim of universal social security coverage and full employment.

Register as an employer with the Social Security Board before the first payroll run.

Set up the levy filing process to include staff below the EC$2,000 threshold, since the filing duty applies to them even though the levy does not.

Check the employee’s age, contributions begin in the week they turn fifteen.

Social Security stops at EC$7,000 a month and the levy at EC$12,000, so additional pay between those points attracts levy but no further Social Security.

Above EC$12,000 both are capped and, with no income tax behind them, the marginal statutory cost of additional pay is nil.

A full week of sickness or maternity benefit suspends the contribution for that week.

Anguilla observes public holidays including Anguilla Day at the end of May, the August Monday carnival holidays and Separation Day in December.

Anguilla observes public holidays including Anguilla Day at the end of May, the August Monday carnival holidays and Separation Day in December.

The scheme pays Age, Survivors and Disability Pensions, Sickness, Maternity and Paternity Benefits, and a Funeral Grant.

Paternity benefit is worth noting, it is payable for two consecutive weeks beginning with the date of confinement, and relatively few schemes in the region provide it at all.

Maternity benefit is payable to an insured woman who gives birth to a living child, or a stillborn child where the pregnancy is over 28 weeks.

No person should receive sickness or maternity benefit and be working at the same time, the benefit replaces wages rather than supplementing them.

The old-age pension calculation assumes at least 150 weeks of work before age 65 and considers the year of highest insurable earnings in the 15 years before that age.

Termination follows local employment legislation, with notice and procedure set by statute and contract.

Final pay enters both the Social Security and levy calculations for the period.

Because contributions are suspended for full benefit weeks, check whether any part of a notice period was covered by sickness or maternity benefit before calculating the final remittance.

Work authorisation for non-Anguillians should be confirmed before committing to a start date.

The East Caribbean dollar is pegged to the US dollar.

The absence of income tax, capital gains tax and tax on dividends or interest makes the territory attractive for relocating senior staff, the capped contributions are the entire statutory cost.

Missing the filing obligation for low-paid staff is the most easily overlooked requirement. You must file for employees earning under EC$2,000 a month even though no levy is payable on them.

Holding the Social Security rate flat is the second. It rises to 6% each side from 1 January 2027 under a published schedule.

Applying one ceiling to both charges is the third. Social Security caps at EC$7,000 and the levy at EC$12,000.

Note also that contributions begin in the week an employee turns fifteen; that a full week of sickness or maternity benefit suspends the contribution; and that self-employed persons pay the full 6% levy.

Register as an employer, configure both ceilings separately, and build the levy filing process to include staff below the EC$2,000 threshold.

Model the escalation to 6% from January 2027 rather than holding the 2026 rate flat.

Remember there is no income tax behind the contributions, so statutory cost above both ceilings is nil.