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Hiring in Belize

Hiring employees compliantly in Belize means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Belize so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Belize or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Belize? Contact us about our International EOR Service

Labor Laws in Belize Dollar

Employment laws in Belize are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Belize employment laws and Belize policies here.

Employee Probation Period

  • Within Belize, the only statutory provision on probationary period relates to employment under an oral contract of employment. 
  • In this case, the probationary period is considered to be two weeks.

Annual Leave in Belize

  • Workers are entitled to 2 working weeks’ vacation annually.
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Holidays in Belize

New Year’s Day 1st January
Baron Bliss Day 9th March
Good Friday  
Holy Saturday  
Easter Monday  
Labor Day 1st May
Commonwealth Day 24th May
National Day 10th September
Independence Day  21st September
Pan -American Day 12th October
Garifuna Settlement Day 19th November
Christmas Day  25th December
Boxing Day 26th December
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Maternity Leave Belize

  • A female worker is entitled to fourteen (14) weeks maternity leave on full pay.
  • Maternity Allowance is paid to Insured Women who are on Maternity leave from work because of their pregnancy and confinement. 
  • The Maternity Allowance is paid weekly for a maximum period of 14 weeks.

Sick Leave in Belize

  • Workers are entitled to 16 days’ sick leave at their basic rate of pay providing they worked an aggregate period of not less than 60 days within 12 months

Working Hours in Belize

  • The standard work week in Belize is 45 hours or six days a week, with paid overtime.

Overtime in Belize

  • A worker who works more than:

    • 8 hours per day in accordance with the Shops Act;
    • 9 hours per day in accordance with the Labor Act;
    • 6 days per week; or,
    • 45 hours per week should be paid at the overtime rate of one and one-half times (1.5) the regular rate.

Termination of Employment in Belize

  • On the termination of a contract of service lasting over one month, the employer shall at the worker’s request, give to him a certificate stating the duration of the employment, the nature of the work or services performed and, the rate of wages paid under the contract.
  • If period of employment is over 2 weeks to 6 months, notice period is of 1 week 
  • If period of employment is over 6 months to 2 years, notice period is of 2 weeks 
  • If period of employment is over 2 years to 5 years, notice period is of 4 weeks 
  • If period of employment is over 5 years, notice period is of 8 weeks
  • Where an employee who has been continuously employed by any employer for a period of 
  • five to ten years and 

    • his employment is terminated by the employer, or 
    • the worker retires on or after attaining the age of sixty years or on medical grounds, that worker shall be paid a severance pay of one week’s wages in respect of each complete year of service; or 
  • over ten years and his employment is 

    • terminated by the employer for reasons, which do not amount to dismissal, or
    • ended because the worker retires on or after attaining the age of sixty years or on medical grounds, 
    • worker abandons the service of an employer for good and sufficient cause, or 
    • a worker who resigns after a minimum of 10 years is eligible for a gratuity equal to severance pay, or 
    • terminated on the expiration of a contract for a definite period. 

that worker shall be paid a severance pay of two weeks’ wages in respect of each complete year of service.

Notice Period in Belize

  • If period of employment is over 2 weeks to 6 months, notice period is of 1 week 
  • If period of employment is over 6 months to 2 years, notice period is of 2 weeks 
  • If period of employment is over 2 years to 5 years, notice period is of 4 weeks 
  • If period of employment is over 5 years, notice period is of 8 weeks

Severance in Belize

  • Where an employee who has been continuously employed by any employer for a period of 
  • five to ten years and 

    • his employment is terminated by the employer, or 
    • the worker retires on or after attaining the age of sixty years or on medical grounds, that worker shall be paid a severance pay of one week’s wages in respect of each complete year of service; or
  • over ten years and his employment is 

    • terminated by the employer for reasons, which do not amount to dismissal, or
    • ended because the worker retires on or after attaining the age of sixty years or on medical grounds, 
    • worker abandons the service of an employer for good and sufficient cause, or 
    • a worker who resigns after a minimum of 10 years is eligible for a gratuity equal to severance pay, or 
    • terminated on the expiration of a contract for a definite period. 

that worker shall be paid a severance pay of two weeks’ wages in respect of each complete year of service.

Belize Salary and Wages

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13th Month Salary in Belize

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • Instead employers will pay a time and a half to employees that work during national/public holidays.

Income Tax in Belize

  • Income Tax was enacted in Belize in 1924 and remained in that basic form up to July 1998, when Business Tax was introduced. 
  • The Legislation is now called “The Income and Business Tax Act”, with an effective date of January 1999 in its current form.
  • Income tax is charged at a rate of 25%, and for residents of Belize, the first $26,000 of their annual income is exempt. Pension income is also exempt.
  • To qualify for residency, an individual must be present in Belize for 183 days or more during a calendar year. 
  • There’s no graduated scale of taxation like in the U.S. and many other countries. 
  • Belize currently has no capital gains tax.

Income Tax

Up to $26,000 0%
Over $26,000 25%
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Social Security in Belize

  • This branch of Benefit provides coverage for insured persons under the following categories: Sickness, Maternity Allowance, Maternity Grant and Funeral Grant.
  • Employment Injury Benefits Branch provides coverage for an insured person who suffers an employment injury, that is an injury or death by way of an accident at work or a disease caused by the type of work he or she does. 
  • This Branch covers Employment Injury/Prescribed Disease Benefit, Constant Attendance Allowance, Disablement Allowance and Death Benefit.
  • A contribution refers to Social Security payment due for any eight hours or more of work in a contribution week. 
  • A Social Security contribution week is from Monday to Sunday.
  • It is payable for all employees who are over fourteen years and under sixty-five years for each contribution week during the whole or any part of which such person is employed in insurable employment.
  • The employer is liable to pay the total contribution due, both his or her own share and the share deducted from the employed person’s salary.
  • The contributions are payable by the employer by the 14th day of each month for the previous month.
  • The weekly contribution is related to the weekly insurable earnings, which, in turn, are related to actual earnings.  
  • For the convenience of employers who pay wages on a weekly basis, the first column in the Schedule of Contributions shows that in the case of a worker whose weekly earnings are under $70.00, the weekly insurable earning is $55.00.
  • As a result, the weekly contribution payable for the Employee portion is $1.03 and the Employer Portion is $4.47 for a total of $5.50. 

 

Contribution

Group 1083

Social Security Contribution

Employee

Group 1083

$1.03

Employer Group 1083 $4.47
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Immigration Belize

  • Visitors to Belize must possess a passport valid for at least three months after the date of arrival and a return ticket with sufficient funds to cover their stay. 
  • Visitors are given a one-month stay, after which an extension can be applied for with the Immigration Department.
  • Visas are not required for citizens of the United States and its territories, Canada, United Kingdom and its territories, European Union, Caribbean and Central American countries.
  • For visitors driving/boating into Belize from Guatemala or Mexico, a temporary importation permit must be secured at the point of entry. Vehicle/vessel permits are valid for 30 days.
  • Belize's labor regulations are designed to protect the local job market to enable the employment of as many Belizeans as possible, and understandably so. 
  • Employment of foreign citizens is possible, however, under certain circumstances. 
  • There are two types of work permit applications in Belize:
  • Application for permission to employ a foreigner:

    • Any foreign citizen who wishes to work in Belize MUST be a legal resident (have resided in Belize for at least six months). 
    • He/she must be in the country legally, with proper visas and/or permits issued by the Immigration Department. 
    • The prospective employer must submit the application for the foreign worker he wishes to hire, along with three passport photos, $20 in stamps, a valid passport, and proof that this individual is qualified for the job. 
    • At the same time, the Labor officer must be satisfied that all efforts to employ a national have been exhausted. 
    • This includes providing proof that the vacant position was advertised locally for at least three weeks, following which, no suitable applicant was found


  • Application for Temporary Self-Employment:

    • This category would apply to foreign investors, among others. 
    • All applicants must be in the country legally, with proper visas and/or permits issued by the Immigration Department. 
    • They are required to produce proof of reasonably sufficient funds for their proposed venture (i.e.: local bank statement of account). 
    • Applicants must also obtain a reference from the relevant Ministry or Local Organization concerned with the category of work involved. 
    • In such situations, the six-month residency requirement is waived, and it is assumed that the venture will lead to creation of employment for nationals in the future.
  • The permits are granted for a period of one year.
Need assistance hiring in Belize? Contact us about our International EOR Service

Type of Visa/Permit

Documentation

Validity

Eligibility

Work Permit (Application for permission to employ a foreigner)

  • Employment letter
  • Photocopy of applicant’s passport
  • Sponsor's letter of Employer
  • Recent Bank Statement
  • $20.00bz postage stamps
  • Police Record (6 months’ validity)
  • Three job advertisement clippings from local newspaper (not applicable for self-employment)
  • Qualifications, Diplomas, Certificates to show proficiency in field of work
  • Three passport size photos
  • Letter of recommendations
1 year

  • Any foreign citizen who wishes to work in Belize MUST be a legal resident (have resided in Belize for at least six months).
  • He/she must be in the country legally, with proper visas and/or permits issued by the Immigration Department. 
  • The prospective employer must submit the application for the foreign worker he wishes to hire, along with three passport photos, $20 in stamps, a valid passport, and proof that this individual is qualified for the job. 
  • At the same time, the Labor officer must be satisfied that all efforts to employ a national have been exhausted. 
  • This includes providing proof that the vacant position was advertised locally for at least three weeks, following which, no suitable applicant was found
Work Permit (Application for temporary Self-Employment)

  • Registration/Trade License of Business
  • Photocopy of applicant’s passport
  • Sponsor's letter of Employer
  • Recent Bank Statement
  • $20.00bz postage stamps
  • Police Record (6 months’ validity)
  • Three job advertisement clippings from local newspaper (not applicable for self-employment)
  • Qualifications, Diplomas, Certificates to show proficiency in field of work
  • Three passport size photos
  • Letter of recommendations
1 year

  • This category would apply to foreign investors, among others.
  • All applicants must be in the country legally, with proper visas and/or permits issued by the Immigration Department. 
  • They are required to produce proof of reasonably sufficient funds for their proposed venture (i.e.: local bank statement of account). 
  • Applicants must also obtain a reference from the relevant Ministry or Local Organization concerned with the category of work involved. 
  • In such situations, the six-month residency requirement is waived, and it is assumed that the venture will lead to creation of employment for nationals in the future.
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Value Added Tax (VAT) in Belize

  • General Sales Tax (GST) in Belize is levied at a 12.5% rate. 
  • This applies to most goods, as well as services. 
  • There are a few exemptions, such as basic food items and basic medical supplies.

VAT

Standard Rate

Group 1083

12.5%

Exempt Rate Group 1083 0%
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Mandatory Benefits in Belize

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

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Sick Leave

  • Maternity Leave

  • Overtime Pay

  • Notice Period

  • Social Security Benefits

Payments And Invoicing

  • The Business Tax Return along with the Tax Due must be filed by the 15th day of each month, covering all receipts for the previous month
  • The penalties for not complying with the filing and payment deadlines are as follows: 
  • Late or Non-filing 

    • 10% of the tax due for every month or part of the month that the return remains outstanding, minimum of $10.00 for a maximum of 24 months. 
  • Late or Non-payment 

    • 1.5% per month on all unpaid balance from the time it was due up to the date of payment. 
  • Failure to file a return 

    • A fine on summary conviction not exceeding $10,000.00, and in default, imprisonment not exceeding Two (2) years.
  • Persons, who are not exempt from the payment of Business Tax must register with the Income Tax Department in order to file and pay.
  • On completion of the registration process a Tax Identification Number (TIN) will be issued. 
  • The TIN number is the same number that is to be used for General Sales Tax and Customs and Excise processes.
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Payroll Accrual in Belize

Country Accruals Additional Information

Social security    6.50%
Vacations   7.40%
Severance per year of service     3.84%

Description

Screenshot_16 (1)

Payroll Accruals Additional Information

 

 

Employment Accruals

Annual Leave Workers are entitled to 2 working weeks’ vacation annually.   This equals 3.8% (2/52 weeks) of annual income
Maternity Leave A female worker is entitled to fourteen (14) weeks maternity leave on full pay.   This equals 27% (14/52 weeks) of annual income
Sick Leave     Workers are entitled to 16 days’ sick leave at their basic rate of pay providing they worked an aggregate period of not less than 60 days within 12 months.     This equals 4.4% (16/52 weeks) of annual income

Overtime     Overtime should be paid at the overtime rate of one and one-half times (1.5) the regular rate.     Normal hourly rate is around 24.5 BZD. Overtime is paid at an additional 12.25 BZD

Severance     Employees should be paid a severance pay of two weeks’ wages in respect of each complete year of service.     This equals 3.8% (2/52 weeks) of annual income
Social Security    Employers must contribute 6.9%.   This equals 6.9% of annual income

Accrued Benefits in Belize

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year %    

Employees are entitled to severance pay that equals 25 days of pay after 5 years of service 

8.18% of annual salary
Vacations %

Workers are entitled to 2 working weeks’ vacation annually

2.74% of annual salary
Notice %

Employees are entitled to 2 weeks of notice after one year of service

2.74% 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

13.66%

Why use Global Expansion to hire in Belize

Establishing a branch office or subsidiary in Belize can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Belize labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Belize law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Belize. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Belize Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

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