Definitive Guide to Hiring in Suriname

Hiring in Suriname

Hiring employees compliantly in Suriname means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Suriname 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 Suriname; or

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

Labor Laws in Suriname

Employee Probation Period

• The probation period may not exceed 2 months; any provision which stipulates a longer probation period or the commencing of a new probation period after termination of the probation period, is null and void.

Annual Leave in Suriname

• In Suriname every employee who works a full calendar year without interruption for the one employer, is entitled to 12 vacation days per year.
• An additional 2 days for the subsequent 3 years up to a minimum of 18 days after the fourth year.
• In the event of service less than one calendar year in the first year of service the employee is entitled to one day for every full month of service
• Using the vacation is obligatory.
• An employee is considered to be employed without interruption if the number of his permitted absent days does not exceed the number of 30 days, excluding the days of sick leave and industrial accidents.

Holidays in Suriname

Maternity Leave Suriname

• Suriname introduced 16 weeks of paid maternity leave.

Paternity Leave Suriname

• 8 days of paid paternity leave.

Working Hours in Suriname

• According to the Labor Code of Suriname there is the limit of maximum working hours for the employee established at the rate of 8.5 hours per day or 48 hours per week.

Overtime in Suriname

• The minimum additional pay for overtime is:
  • during the week: 50%; 
  • on Sundays and public holidays and on compensating days of rest: 100%;
  • in all cases of work on Sundays: 100%.

Termination of Employment in Suriname

• The termination may be effected only on the day or on one of the days specified in the agreement or regulation, or, in the absence of such, on one of the days indicated in the indication of permanent customs; if there is no such indication, the termination may occur on any day.
• The employer can't cease to operate during the time when the employee, due to illness, can't perform his work and retains his right to payment.
• The employer can't terminate during the time when the employee, as a result of performing his compulsory military service or any other legal regulation, or from the government with financial compensation imposed an interim commitment in the interests of internal security of public order and rest, is unable to perform the specified work.
• This provision is not valid for a minor employer, from which employment at the time of temporary prevention has not yet lasted four months.

Notice Period in Suriname

• The notice period depends on the years of employment.
• It is equal to a maximum of 6 months if given by an employer and a maximum of 3 months if given by an employee.

Severance in Suriname

• The 1859 civil code requires employers to provide a severance pay
  • equal to four weeks of the employee's wages for four or fewer years of service;
  • one week of wages for each year of service for five to nine years of service;
  • four months of wages for 10 to 15 years of service; or
  • six months of wages for more than 15 years of service.

Suriname Salary and Wages

13th / 14th Month Salary in Suriname

• Yes (Mandatory)
• There is no statutory requirement to pay the 13th or the 14th month salary.
• However employers must pay a vacation allowance that equals to 50% wages in addition to the employee normal salary.

• In principle, resident individuals must pay social security contributions, which are contributions for the old-age insurance.
• Some residents are exempt from paying social security contributions.
• The annual old-age insurance contribution is 4% of employment income.
• The basic illness insurance law and the pension law apply to resident individuals.
• The basic illness insurance law, which took effect on 9 October 2014, aims to sufficiently insure every Suriname resident against costs of illness.
• The pension law, which took effect on 9 December 2014, aims to provide every Suriname resident with a pension
• The principal obligations of employers under these laws consist of providing sufficient insurance coverage against the costs of illness, arranging for participation in a pension scheme and paying at least 50% of the insurance premiums and the pension premiums.

Immigration Suriname

Learn about immigration requirements in Suriname, work visa requirements, work permits and more.

• In general, foreign individuals who wish to reside and work in Suriname need residency and working permits.
• The conditions for obtaining such permits depend on the nationality of the individual.
• Foreigners with a visa requirement (with exception for those of Surinamese origin), who intend to stay in the Republic of Suriname for a period of longer than 90 days, should apply for an Authorization for Temporary Stay (MKV = Machtiging tot Kort Verblijf) at least 3 months before the intended departure to Suriname.
• The validity of this permit depends upon the nationality of the individual.
• Individuals must contact their nearest embassy to get more details.
• The documentation needed for MVK are as follows: -
  • A completed Authorization for Temporary Stay (MKV) application form
  • Two recent passport photographs
  • A copy of all written pages in the passport (stamps, visas, etc.); passport must be valid for 6 months upon arrival in Suriname
  • A certified copy of the birth certificate
  • An original certificate of good conduct
  • Bank statements or other documents/information proving sufficient financial means during stay in Suriname
  • If application concerns internship or voluntary work: a copy of an official letter of the organization/institution in Suriname stating the purpose and duration of agreement
  • If applicant intends to work in Suriname: a copy of the labor/employment contract
  • Proof of residence (if applicable)
  • Proof of marital status:
    • If married/divorced/single/widow: a certified copy of marriage license/divorce certificate/proof of widowhood.
    • If cohabiting (partner relationship): proof of cohabitation in the country
  • Notarized letter of consent by parents and a copy of the birth certificate:
    • If a child (up to 17 years) is traveling alone
    • If a child (up to 17 years) is traveling with one of the parents (with consent of the 2nd parent)
    • a certified copy of the judicial decision in case of adoption/legal guardianship of a child (up to 17 years)
  • A copy of a statement of guarantor in Suriname (in case of insufficient funds of applicant)
  • A copy of valid health insurance
  • A health certificate

Value Added Tax (VAT) in Suriname

• A supply of goods of goods will in principle be taxed in case it is considered a local delivery (the goods are delivered by a local party).
• The supply and import of goods is subject to a VAT of 10%
• The supply of services is subject to a VAT of 8%
• Luxury goods are subject to a VAT of 25%
• Certain goods are exempt from VAT

Mandatory Benefits in Suriname

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, notice period and severance pay
• Statutory benefits also include social security benefits

Payments And Invoicing

• The standard tax year is the calendar year. However, on request and under certain conditions, a business may use a different financial accounting year as its tax year.
• In principle, Suriname wage tax returns must be submitted for monthly periods. 
• Because the Suriname wage tax is a pre-levy on the Suriname income tax, residents and nonresidents remain liable for Suriname income tax if the wage tax is not withheld correctly.
• The wage tax returns must be filed and the wage tax due must be paid by the seventh business day of the month following the end of the reporting period. 
• For most nonresident employees, wage withholding tax is a final tax.
• If the fiscal year is the calendar year, resident taxpayers must file a provisional tax return by 15 April of the current fiscal year. 
• Otherwise, they must file this return within two and one-half months after the beginning of the current fiscal year. 
• The return must show taxable income that is at least equal to the taxable income shown on the most recently filed final tax return. 
• In principle, the tax due on this provisional income tax return must be paid in four equal installments, which are due on 15 April, 15 July, 15 October and 31 December. 
• An extension of time to file the return and pay the tax is not granted. 
• On request of the taxpayer, the Tax Inspector may consent to the reporting of a lower taxable income than the taxable income shown on the most recently filed final tax return. 
• Nonresident taxpayers must only file a final income tax return

Payroll Accrual in Suriname

Country Accruals Additional Information

Description

CoverageUniversal: Residents of Suriname, including some foreign nationals.Social insurance: Employed and self-employed persons.Special system for civil servants.

Payroll Accruals Additional Information

Accrued Benefits in Suriname

Why use Global Expansion to hire in Suriname

Establishing a branch office or subsidiary in Suriname 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 Suriname labor laws are complex.

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

Global Expansion makes it easy for you to expand into Suriname. 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 Suriname 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.