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Hiring in Sint Maarten (Dutch Part)

Hiring employees compliantly in Sint Maarten (Dutch Part) means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Sint Maarten (Dutch Part) 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 Sint Maarten (Dutch Part); or

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

Need assistance hiring in Sint Maarten (Dutch Part)? Contact us about our International EOR Service

Labor Laws in Sint Maarten (Dutch Part)

Employee Probation Period

  • A trial period must be agreed to in writing and may not exceed two months

Annual Leave in Sint Maarten (Dutch part)

  • Every employee is entitled to an amount of vacation days per year equal to at least three times the contracted number of working days per week, with a minimum of fifteen days per year for employees who work six days per week.
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Holidays in Sint Maarten (Dutch part

New Year’s Day 1st January
Good Friday 10th April
Easter Sunday 12th April
Easter Monday 13th April
Carnival 30th April
Labor Day 1st May
Ascension Day 21st May
Whitsun 31st May
Emancipation Day (of Sint Maarten) 1st July
Constitution Day 12th October
St. Martin's Day 11th November
Christmas Day 25th December
Boxing Day 26th December

 

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Maternity Leave Sint Maarten (Dutch part)

  • The employees are entitled to 16 weeks of maternity leave.

Paternity Leave Sint Maarten (Dutch part)

  • Fathers are entitled to receive paid paternity leave of seven days

Sick Leave in Sint Maarten (Dutch part)

  • In the event an employee is unable to perform his/her labor due to sickness (that is not intentionally caused by the employee), the employer is obligated to continue payment of (100% of) the employee’s salary during a relative short period of time (unless otherwise stipulated in the labor agreement).

Working Hours in Sint Maarten (Dutch part)

  • Working hours are 40 hours/week (non-schedule workers);
  • 45 hours/week (schedule workers)

Overtime in Sint Maarten (Dutch part)

  • Overtime shall be paid at time and a half (1 ½) the normal rate during the weekdays and twice (2) the normal rate on Sundays, Public Holidays and Rest Days, except where Sunday is scheduled as part of a shift arrangement, and is therefore paid at time and a half (1 ½) the normal rate.

Termination of Employment in Sint Maarten (Dutch part)

  • St. Maarten has mandatory rules and regulations regarding termination of employment agreements that have to be taken into account.
  • There are, in general, four possibilities for an employer to terminate an employment agreement pursuant to St. Maarten law:
    • Immediate dismissal, which is only allowed if there is an urgent reason, justifying an immediate termination. Such urgent reason and the immediate termination would immediately have to be informed to the employee;
    • Termination by giving notice, in which event the prior approval from the Director of the Ministry of Public Health, Social Development and Labor (Ministerie van Volksgezondheid, Sociale Ontwikkeling en Arbeid) has to be obtained pursuant to the National Ordinance Termination Employment Agreements (Landsverordening Beëindiging Arbeidsovereenkomst). Without such consent any termination by giving notice will be considered null and void. Such consent has to be requested by the employer and the request has to be justified and substantiated. The Director could decide to grant consent under the condition that compensation has to be paid out to the employee or under other conditions to be established by the Director;
    • Dissolution by the Court of First Instance of St. Maarten; and
    • Termination by mutual agreement. In such event the employer and the employee themselves negotiate the terms and conditions for the termination of the employment agreement.

Notice Period in Sint Maarten (Dutch part)

  • The mandatory notice period to be taken into by an employer is:
    • In case of an employment of less than five years: one month;
    • In case the employee has been employed more than five but less than ten years: two months;
    • In case the employment has lasted longer than ten years but less than fifteen years: three months;
    • In case the employment has lasted more than fifteen years: four months.

Severance in Sint Maarten (Dutch part)

  • The employer must pay the employee a one-time severance pay equal to one week’s wage for the first year of employment for the first ten years of service;
  • For the eleventh till the twentieth full years in service one and a quarter times the weeks' wages per year;
  • For the following years, twice the week's wages per year.
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Sint Maarten (Dutch part) Salary and Wages

13th / 14th Month Salary in Sint Maarten (Dutch part)

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • Employers may give bonuses at their discretion.
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Income Tax in Sint Maarten (Dutch part)

  • Residents are taxable on their worldwide income.
  • Nonresidents are taxable only on income derived from certain Sint Maarten sources.
  • A resident individual who receives income, wherever earned, from former or current employment is subject to income tax in Sint Maarten.
  • Income is taxed under a scheduler system
  • Employment income, including most employment benefits, profits derived from the carrying on of a business by an individual, income from immovable property and the rights to which they are subject, income from moveable assets and periodic allowances are taxable
  • Rates are progressive up to 47.5% (including a local surtax of 25%)
  • However, under the "pensioner's regulation" (designed to attract high net worth foreign individuals) an eligible taxpayer may opt for taxation on foreign income at 10% flat rate or taxation on foreign income at the applicable progressive income tax rate on deemed income of ANG 500,000 (approximately USB 280,800)

Income Tax

Taxable Income

Rate

From

To

 
0 ANG 32,054 12.5% (including the 25% surtax)
ANG 32,054 ANG 48,082 20% (including the 25% surtax)
ANG 48,082 ANG 66,781 26.25% (including the 25% surtax)
ANG 66,781 ANG 100,169 33.75% (including the 25% surtax)
ANG 100,169 ANG 141,572 40% (including the 25% surtax)
ANG 141,572 - 47.5% (including the 25% surtax)
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Social Security in Sint Maarten (Dutch part)

  • All resident individuals must pay social security contributions.
  • The contributions provide benefits under the General Old Age Pension Ordinance (AOV), the General Widows and Orphans Ordinance (AWW) and the General Insurance Extraordinary Sickness Ordinance (AVBZ).
  • Contributions to the health insurance (ZV) and disability insurance (OV) are also due on salaries up to a certain threshold.
  • Social security contributions rates for 2023 are given below;-

Contribution

Employer

Employee
AOV 9% 6%
AWW 0.5% 0.5%
BVZ 9.3% 4.3%
AVBZ 0.5% 1.5%
ZV 1.9% -
OV 0.5% to 5% -

Immigration Sint Maarten (Dutch part)

  • The Kingdom of the Netherlands – Caribbean consists of St. Maarten, Aruba, Curacao, Bonaire, St. Eustatius and Saba.
  • The Dutch Caribbean Visa is valid for travel to any of the countries mentioned above and is issued at Dutch Embassies and Consulates around the world.
  • US, Canadian, and EU citizens and legal residents, as well as legal residents and citizens of countries who do not require a visa to travel to St Maarten, when visiting St Maarten can stay for up to 90 days (short stay).
  • Individuals must have a valid passport.
  • Short stays include holidays, business trips and family visits.
  • The maximum stay per visit in any one of the countries within the Dutch Caribbean is 1 month (30 days).
  • A visitor cannot exceed 90 days’ total stay in the Dutch Caribbean, per calendar year, when travelling on a Dutch Caribbean visa.
  • For Dutch nationals and American nationals, maximum stay allowed is 6 months uninterrupted with the possibility to extend.
  • For nationals of Canada, the European Union, Australia, New Zealand and Japan; maximum stay allowed is 3 months uninterrupted with the possibility to extend.
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Type of Visa/Permit

Documentation

Validity

Eligibility
Dutch Caribbean Visa
  • A passport that is valid upon entry and for the duration of stay
  • a completed and signed Embarkation and Disembarkation card (ED-card);
  • a valid return- or onward ticket;
  • a valid reservation for an accommodation in St. Maarten (e.g. hotel or apartment) or proof that
  • he/she owns property in St. Maarten (a residence, condominium, apartment, timeshare apartment
  • or a pleasure yacht moored in St. Maarten;
  • a legitimate address of a family member or friend if not staying at a hotel, etc.
  • proof of sufficient financial means for hotel expenses (if applicable) and living expenses during
  • his/her stay (U.S.$ 100.00 - $200.00 per day or valid credit card)
 90 days
  • Foreigners seeking to visit Sint Maartin for short stay must obtain a Dutch Caribbean Visa
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Value Added Tax (VAT) in Sint Maarten (Dutch part)

  • Sales tax (BBO) is levied on the sale of goods and provision of services
  • The standard rate is 5%

VAT

Standard Rate

Group 1083

5%
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Mandatory Benefits in Sint Maarten (Dutch part)

  • 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
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Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Paternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice period

  • Severance Pay

  • Social Security Benefits

Payments And Invoicing

  • Because the wage tax is a pre-levy to the income tax, employers must file wage withholding tax returns on a monthly basis.
  • The wage tax return must be filed before the 16th day of the month following the month in which the salaries are paid to employees.
  • For most employees, wage withholding tax is the final tax.
  • Personal income tax returns for the calendar year must be filed within two months after the issuance of the tax return forms, unless an extension for filing is obtained.
  • Any additional income tax to be paid is normally due within two months after the date of the final assessment.
  • If both spouses earn income, married persons are taxed separately on the following types of income:
    • Employment income
    • Self-employment and business income
    • Certain periodic allowances, including old-age pensions, alimony and disability allowances

Payroll Accrual in Sint Maarten (Dutch part)

Country Accruals Additional Information

Social Security 7.50%
Health Insurance 8.30%
Accident Insurance 5.00%
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Description

The employee's share of taxes for old age insurance (AOV) and widows and orphans insurance (AWW) is 6.5% of a maximum of ANG 100,000 gross wages. The employer contributes 7.5%. Income in excess of this amount is not subject to this tax. Expatriates may be exempt from this tax.Coverage for health insurance for workers earning up to ANG 67,816.32 is compulsory. Contributions are 4.2% for the employee, 8.3% for the employer.Employees are also insured against loss of income as a result of an accident that occurs at work. The premium varies from 0.5% to 5%, depending on the class of risk, to be paid fully by the employer. Maximum premium income is ANG 67,816.32.The Algemene Verzekering Bijzondere Ziektekosten (AVBZ), or general insurance exceptional medical expenses, is a national social insurance from which the entire population of St. Maarten can derive rights. The AVBZ guarantees, among other benefits, medical care to persons suffering from a chronic disease or a mental or physical disorder. The premium charged to create the necessary funds amounts to, in general, 2% of taxable income, with a maximum charge of ANG 8,572 per year (2012). The employer's share amounts to 0.5% of the employee's income, with a maximum of ANG 2,143 per year (2012). A more recent premium cap has not been published yet. Old-age pensioners are taxed at a rate of 1.5%.

Payroll Accruals Additional Information

 

 

Employment Accruals
Annual Leave Every employee is entitled to an amount of vacation days per year equal to at least three times the contracted number of working days per week, with a minimum of fifteen days per year for employees who work six days per week. This equals 4.1% (15/365 days) of annual income
Maternity Leave The employees are entitled to a full paid leave of a minimum of 4 and a maximum of 6 weeks before the estimated delivery date ('pregnancy leave') and to a minimal of 6 and a maximum of 8 weeks after the birth ('maternity leave'). This equals 19.2% (10/52 weeks) of annual income
Paternity Leave Fathers are entitled to receive paid paternity leave of seven days This equals 1.9% (7/365 days) of annual income
Sick Leave In the event an employee is unable to perform his/her labor due to sickness (that is not intentionally caused by the employee), the employer is obligated to continue payment of (100% of) the employee’s salary during a relative short period of time (unless otherwise stipulated in the labor agreement). Subjective
Overtime Overtime shall be paid at time and a half (1 ½) the normal rate during the weekdays and twice (2) the normal rate on Sundays, Public Holidays and Rest Days, except where Sunday is scheduled as part of a shift arrangement, and is therefore paid at time and a half (1 ½) the normal rate. Depends on the number of overtime hour worked
Severance The employer must pay the employee a one-time severance pay equal to one week’s wage for the first ten years of service This equals 1.92% (1/52 weeks) of annual income
Social Security All resident individuals must pay social security contributions.
The contributions provide benefits under the General Old Age Pension Ordinance (AOV), the General Widows and Orphans Ordinance (AWW) and the General Insurance Extraordinary Sickness Ordinance (AVBZ). Total employer contributions are 23.8%.		 This equals 23.8% of annual income

Accrued Benefits in Sint Maarten (Dutch part)

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)

 1.37%
of annual salary
Vacations %

Employees are entitled to 15 days of annual leave (4.28% of annual salary)

 4.28%
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 13.98%

13.98%

Why use Global Expansion to hire in Sint Maarten (Dutch part)

Establishing a branch office or subsidiary in Sint Maarten (Dutch part) 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 Sint Maarten (Dutch part) labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Sint Maarten (Dutch part) law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Sint Maarten (Dutch part). 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 Sint Maarten (Dutch part) 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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