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Overview
Falkland Islands Pound (FKP)
CURRENCY
Stanley
CAPITAL
monthly
PAYROLL FRECUENCY
11
PUBLIC HOLIDAYS
0 to FKP 19.75
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Falkland Islands
Employer
By 2022, in the Falkland Islands, there's a flat tax per week of FKP 19.75 for employers.
Employee
By 2022, in the Falkland Islands, there's a flat tax per week of FKP 19.75 for employees.
- 0%
Total Employee Cost
Employee Income Tax in Falkland Islands
Worker Income Tax
21%
First FKP 12000
26%
About the FKP 12000
Payroll Contributions in Falkland Islands
Payroll Cycle
With payroll outsourcing services you can pay your employees monthly, on the last day of each month. However, in the agricultural, oil, and gas industries, the payment is commonly weekly.
13th Salary
In the Falkland Islands, the payment of the 13th month is not mandatory.
Employee Benefit in Falkland Islands
Visa and work permit in Falkland Islands
The Falkland Islands has a regime for citizens who wish to enter the country as visitors, for residence, or for work. Thus, in any of these cases, the person first needs a visa. For all formalities for foreign employees that you want to hire, you can use the services of a Professional Employment Organization.
In this case, the process does not consist of authorization for entry as in other countries, but of an evaluation. In this way, the authorities determine whether the entry intentions of the applicant are legitimate and adequate. Furthermore, there are 3 types of permits in the country, which we will detail below:
1. Work permit
This permit allows the holder to reside in the country and work in the country while the permit is valid. However, the applicant must provide proof that they have accommodation in the Falkland Islands. In addition, these permits are valid for a maximum of 4 years, and then the person can request an extension or a permanent residence permit.
2. Temporary residence permit
The people who have this permit and their dependents included in it may request a work permit. In this case, the Employer of record in Falkland Islands carries out the process for the employees you wish to hire. Moreover, the temporary residence permit has a duration of 3 years and the person can obtain it before entering the territory.
3. Permanent residence permit
The permanent residence permit allows the holder to enter, leave and reside permanently in the Falkland Islands. In addition, the person who owns this permit, or needs a work permit to work in the country. However, there are established quotas to grant this permission to foreign citizens, which vary each year.
VAT in Falkland Islands
In the Falkland Islands, there is no VAT regime.
Working Hours in Falkland Islands
General
The employment contracts establish regular working hours in the country, manageable with an Employer of record in Falkland Islands. However, in the public sector, the normal schedule is 7 and a half hours; in the private sector, it is 8 hours a day.
Overtime
Through the Employer of record in Falkland Islands you can pay overtime on a prorated basis. In this case, it depends on the hours worked outside the regular hours established in the employee's contract. Also, employees can choose not to work overtime but there must be an agreement in the contract.
Working Week
From Monday to Friday.
Employee Termination in Falkland Islands
Termination Process
Typical termination processes are made easier with the assistance of an Employer of record in Falkland Islands. In this case, employees laid off for economic reasons or company restructuring must receive prior notice. Also, in case of the dismissal of several workers, the employer must carry out a consultation.
Likewise, termination can occur by agreement between the parties but only if both parties benefit. If this is not the case, both must respect the established notice periods.
Notice Period
With HR and payroll outsourcing, you will be able to manage notice periods in the country. In this case, the said period depends on the employee's service time from one month, it is as follows:
- For a service period of fewer than 2 years, the notice period cannot be less than 1 week.
- If the period of service is between 2 and 12 years, the period cannot be less than 1 month for each year of work.
- If the service period is equal to or greater than 12 weeks, the period cannot be less than 12 weeks.
Severance Pay
Pay severance pay with PEO services, which consists of 2 weeks of salary for illegal termination.
Probation Period
According to the employment laws in the Falkland Islands, employment contracts must establish a probation period. Generally, the said period is 3 months but can last up to 6 months. Additionally, an extension of the probation period for any reason requires the written consent of both parties.
Employee Leaves in Falkland Islands
Public Holidays
There are 11 national holidays throughout the year.
Vacation Holidays
There are 30 vacation holidays throughout the year.
Sick Days
Workers can self-certify for this sick leave but only for the first 5 days. So if the employee needs more sick days, they will need to get a certified doctor's note. Also, the pay, what you can do with an EOR, varies between employers and then the employee moves on to statutory sick pay.
Paternity Leave
Parents can receive 2 weeks of leave for a percentage of their salary depending on the employer.
Paternal Leave
In the Falkland Islands, there is no legislation for parental leave.
Other Leave
There are no other licenses in the country.
Maternity Leave in Falkland Islands
In the country, female employees are legally entitled to receive 6 weeks of maternity leave with full pay. However, many employers give their employees longer leave, commonly 12 weeks. They can then receive half or a fraction of the salary for said license, which you can pay through a PEO.
There are 42 leave throughout the year.