Hire employees and contractors in Barbados

Remote’s guide to employing in Barbados.

  • Capital city

    Bridgetown

  • Currency

    Barbadian dollar
    ($, BBD)

  • Population size

    287,371
    (2020)

  • Languages spoken

    English and Bajan Creole

  • Availability

    Remote-Owned Entity in 2023

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

The island nation of Barbados has been inhabited since the 13th century by the indigenous Kalinago people, prior to the arrival of European explorers, after which the territory rapidly changed hands as a Spanish, Portuguese, and finally a British colony.

In recent times, Barbados holds a place as a popular tourist haven with its pristine beaches, classical architecture, and Caribbean cuisine that draws over a million visitors annually.

Map of Barbados
  • Capital city

    Bridgetown

  • Currency

    Barbadian dollar
    ($, BBD)

  • Languages spoken

    English and Bajan Creole

  • Population size

    287,371 (2020)

  • Ease of doing business

    Medium

  • Cost of living index

    81.49 (2021)

  • Payroll frequency

    Weekly, bi-weekly, monthly

  • VAT - standard rate

    17.5%

  • GDP - real growth rate

    19.0% (2020)

Grow your team in Barbados with Remote

To employ in Barbados, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Barbados can get complicated, especially without established local relationships. 

Remote’s global employment solution makes it easy for your company to employ workers in Barbados quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Like many other countries, Barbados treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Barbados

Provisions for employee protections and workers’ rights are spelled out in the Barbadian Constitution and across several government statutes, such as:

  • the Employment Rights Act,
  • the Trade Unions Act,
  • the Occupational Safety and Health Act, and
  • the Severance Payments Act.

Employees in Barbados generally enjoy protection against discrimination based on age and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Barbados.

Minimum wage

The Barbadian minimum wage is currently fixed between BDS$ 6.25 - BDS $8.5 per hour, or roughly $3.12 - $4.25 hourly.

Competitive benefits package in Barbados

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Barbados are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Calculate the cost to hire an employee
in Barbados

Taxes in Barbados

Learn how employment taxes affect your payroll and your employees’ paychecks in Barbados.

  • Employer

    • 6.75%: National Insurance Fund

    • 2%: Non-contributory Fund

    • 0.75%: Unemployment contribution

    • 0.75%: Employment Injury

    • 0.5%: Severance contributions

    • 0.5%: Training Levy

    • 1.5%: Health Service Contribution

  • Employee

    • 6.75%: National Insurance Fund

    • 2%: Non-contributory Fund

    • 0.75%: Unemployment contribution

    • 0.5%: Training Levy

    • 0.1%: Catastrophe Fund

    • 1%: Health Service Contribution

Types of leave

Paid time off

After working with an employer for five months, employees are entitled to three weeks of paid time off, although this can be postponed by an employer for up to six months.

In practice, this means that employees might end up taking their first vacation after a year of employment.

Public holidays

There are 11 public holidays and employees are entitled to double pay if they’re required to work on a public holiday.

Sick leave

There’s no statutory sick leave specified under Barbadian law and employers are only required to adhere to whatever provisions laid down in the employment contract.

Maternity leave

Female employees who have been employed for at least a year are entitled to 12 weeks of maternity leave, starting six weeks before delivery.

Paternity/parental leave

There’s no statutory paternity leave provided under Barbadian law.

Other leave

Jury duty leave: Employers are obligated to permit employees to take paid leave off work for jury duty.

Employment termination

Termination process

Employee contracts can be terminated with written notice provided a reasonable justification is provided. Otherwise, an employee who is deemed by a labor tribunal to have been terminated unfairly might have to be reinstated.

Notice period

Employees should be informed of a termination anywhere from a week to ten weeks in advance — depending on their tenure, otherwise payment can be made in lieu of notice.

Severance pay

The Barbadian Severance Payments Act states that employees who’re laid off for reasons other than misconduct are entitled to severance benefits, provided they have been employed for at least 104 weeks.

In such circumstances, an employee would be owed two and half weeks’ wages for each year worked, for the first ten years of employment.

This rate increase to three weeks’ pay for the 11th to the 20th year of employment, and finally, three and half weeks’ pay for the next 13 years of employment, i.e., years 21 to 33 of an employee’s tenure.

  • Years 1 - 10: 2.5 weeks’ pay per year
  • Years 11 - 20: 3 weeks’ pay per year
  • Years 21 - 33: 3.5 weeks’ pay per year

Probation periods

There are no statutory probation periods and employees can generally be dismissed at will until after they’ve completed a year of service.

Discover how Remote can help you grow your global team.

Get started today