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Hiring in Seychelles
Seychelles, officially known as the Republic of Seychelles, is an archipelagic island country in East Africa. Victoria is the capital and the largest city of Seychelles. English, French and Seychellois Creole are the official languages. Seychellois rupee is the official currency. Agriculture especially plantation, and tourism are the prominent industries of the economy. Seychelles’ main trading partners are Qatar, France, British Virgin Islands and South Africa. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Seychelles’ legal and tax regulations. Employment regulations are covered by the Labor Code. Labor Code stipulates that employees are entitled to 21 days of annual leave. Residents are taxed on their worldwide income; non-residents are taxed on their Seychelles-source income. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with Seychelles’ Labor Code and tax laws.
statutory labor requirements
Probation Period
- Probationary period cannot exceed 6 months
Annual Leave
- Employees are generally entitled to 21 days of paid annual leave, or 1.75 days per month worked.
Public Holidays
- New Year's Day (1st January)
- Good Friday (10th April)
- Holy Saturday (1th April)
- Easter Monday (13th April)
- Labor Day (1st May)
- Corpus Christi (11th June)
- Constitution Day (18th June)
- Independence Day (29th June)
- Assumption of Mary (15th August)
- All Saints' Day (2nd November)
- Feast of the Immaculate Conception (8th December)
- Christmas Day (25th December)
Maternity Leave
- Female employees are generally entitled to 14 weeks of paid maternity leave.
- 12 additional weeks may be taken unpaid either before or after the paid leave.
Paternity Leave
- Male employees are entitled to 10 days of paternity leave
Sick Leave
- In general, employees are entitled to 30 days of paid sick leave per year, or in cases of hospitalization, 60 days.
Work Hours
- The standard work week may not exceed 60 hours or 12 hours per day.
Overtime
- Overtime is allowed of up to 60 hours per month, or 15 extra hours per week.
Notice Period
- If terminating an employee for just cause, the employer must give the following notice:
-
- Casual worker: one day
- Worker on probation: seven days
- Any other Seychellois worker: one month’s notice
- Non-Seychellois worker who is also not a casual worker and not on probation: term as specified in the employment contract, or if none specified, one month’s notice
13th / 14th Month Pay
- Yes (Mandatory)
- There is a statutory requirement to pay the 13th month salary.
- This is equivalent to one month salary.
- The payment is relegated to nationals.
- Some employers may decide to pay the 14th month but that is discretionary.
income tax
- All individuals, whether resident or non-resident in Seychelles, are subject to personal income tax on their gross income derived from Seychelles.
- Residents are subject to tax on worldwide income.
- Taxable income includes income from employment (and fringe benefits), gains on the disposal of business assets, income from the exercise of a business or profession and investment income (dividends, interest, royalties, fees, rental income, etc.).
- Benefits in kind are subject to the non-monetary benefits tax on the value as prescribed in the law.
- The taxable amount depends on the kind of benefits.
- Individual income tax is levied on employment income at progressive rates up to 30% as per the above table.
- Tax also is levied on non-monetary benefits paid to the employee at a rate of 20%, which is paid by the employer under the monthly payroll tax filing.
|
Taxable income (SCR) – Citizens |
Rate |
|
0 – 8 555.50 |
0% |
|
8 555.51 – 10 000 |
15% |
|
10 000.01 to 83 000 |
20% |
|
Above 83 000 |
30% |
|
Non-monetary benefits |
20% |
|
Taxable income (SCR) – Non-Citizens |
Rate |
|
0 – 10 000 |
15% |
|
10 000.01 to 83 000 |
20% |
|
Above 83 000 |
30% |
|
Non-monetary benefits |
20% |
deductible expenses
- Expenses may be deducted only if they are incurred by an individual in gaining assessable business income
- No deduction is allowed for losses or costs (including commuting costs) incurred by an employee in deriving emoluments.
immigration
- All foreign nationals visiting Seychelles are granted visa free access.
- They must be in a possession of a valid passport, return or onward ticket, proof of accommodation and sufficient funds.
- The Visitor’s Permit is issued free of charge and is initially valid for up to three months but it can be extended for a fee for a period of up to three months with further extensions not exceeding total period of twelve months.
- Every foreigner trying to work in Seychelles needs a Gainful Occupation Permit (GOP), also known as a work permit.
- This document allows the person to be gainfully occupied in Seychelles, either as an employee or a self-employed person.
- Either the prospective employer or the employee, in the case of a self-employed person, must fill out the application at least 10 weeks before work starts.
- A foreigner cannot enter the country with the purpose of employment before obtaining a GOP.
- Employees will also need a resident permit to live in the country.
- These permits are typically granted to people who are:
-
- Not prohibited immigrants
- Connected with Seychelles through family or other domestic options
- Making a special contribution to the country’s economic, social, or cultural life
- Throughout the application process, Seychelles considers certain factors before giving out Seychelles work permits or GOPs, including:
-
- The technical or professional qualifications of the applicant
- The applicant’s reputation, health, and character
- The availability of local people for the job
- Protection of any local interests
- The social and economic benefit the applicant can bring to the country
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Gainful Occupation Permit (GOP) |
|
1 year |
|
value added tax
- VAT is levied on the supply of goods or services in Seychelles, and on the import of goods or services
- The standard VAT rate is 15%. A 0% rate applies to certain supplies.
|
VAT |
|
|
Standard Rate |
15% |
withholding tax
The domestic WHT on various types of payments are as follows (the tax is a final tax for non-residents, but the rate may be reduced under an applicable tax treaty):
|
Payment |
Residents |
Non-residents |
|
Dividends |
0% |
15% |
|
Interest |
0% to 33% |
0% to 33% |
|
Royalties/Technical service fees |
15% |
15% |
|
Management fees |
15% |
15%/33% |
termination
If terminating an employee for just cause, the employer must give the following notice:
-
- Casual worker: one day
- Worker on probation: seven days
- Any other Seychellois worker: one month’s notice
- Non-Seychellois worker who is also not a casual worker and not on probation: term as specified in the employment contract, or if none specified, one month’s notice
- Severance pay may be due to the employee and depends upon the method of termination.
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 13th month 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 |
|
13th month pay |
|
Social Security Benefits |
payments and invoicing
- The tax year is the calendar year.
- There is no joint taxation of spouses in Seychelles.
- Spouses are taxed separately on their individual emoluments and non-monetary benefits insofar as the collection of tax is made through withholding at source.
- Filing and payment – An annual business tax return must be submitted by individuals engaged in business activities by 31 March following the end of the tax year.
- As far as employment income is concerned, income tax withheld on the emoluments of employees must be remitted to the SRC on a monthly basis, using the Business Activity Statement.
- Business tax may be remitted/paid in different ways as described in the above section.
- Income tax withheld on the emoluments of employees must be paid to the SRC by the employer on a monthly basis.
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 Seychelles ranked 100th in the World in 2019 in terms of ease of doing business.
employee accruals
| Christmas Bonus% |
Based on one month bonus |
| Christmas Bonus Over Vacations % |
0% |
| Severance per Year % |
No statutory requirement |
| Vacations % | Employees are entitled to 21 days of annual leave (5.76% of annual salary) |
| Notice % |
Employees are entitled to a 1 month of notice period for one year of service or more (8.33%) |
| 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 22.42% |
employer accruals
Additional information (Country Accruals)
| Pension fund | 2.00% |
| Social security | 20.00% |
| Maternity leave | 14 weeks |
| Vacations | 9.32% |
| Description | Probationary periods are permitted.Employers should provide one month notice to employees working under a fixed-term contract if they intend not to renew the contract.If terminating an employee for just cause, the employer must give the following notice:Casual worker: one day,Worker on probation: seven days,Any other Seychello is worker: one month’s notice,Non-Seychellois worker who is also not a casual worker and not on probation: term as specified in the employment contract, or if none specified, one month’s notice.Severance pay may be due to the employee and depends upon the method of termination.
|
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Employees are generally entitled to 21 days of paid annual leave | This equals 5.75% (21/365 days) of annual income |
| Maternity Leave | Female employees are generally entitled to 14 weeks of paid maternity leave. | This equals 26.9% (14/52 weeks) of annual income |
| Paternity Leave | Male employees are entitled to 10 days of paternity leave | This equals 2.7% (10/365 days) of annual icnome |
| Sick Leave | In general, employees are entitled to 30 days of paid sick leave per year, or in cases of hospitalization, 60 days. | This equals 8.22% (30/365 days) of annual income |
| Overtime | Overtime is allowed of up to 60 hours per month, or 15 extra hours per week. | Normal hourly rate is around 122.5 SCR. Overtime is paid at an additional 61.25 SCR |
