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Overview
East Caribbean Dollar (XCD)
CURRENCY
Plymouth
CAPITAL
monthly
PAYROLL FRECUENCY
11
PUBLIC HOLIDAYS
0 to 6.5
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 Montserrat
Employer
Company Payroll Contributions
0% - 6.5%
Montserrat Social Security Fund (MSSF)
0% - 6.5%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 5.5%
Montserrat Social Security Fund (MSSF)
0% - 5.5%
Total Employee Cost
Employee Income Tax in Montserrat
Worker Income Tax
20%
0 to 2,500 XCD
25%
2,501 to 8,500 XCD
30%
More than 8,500
Minimum Wage in Montserrat
General
In Montserrat, there is still no legislation in place regarding the minimum wage. Thus, employees are not protected from unduly low pay.
Nonetheless, most employers earn an average of 2500 XCD per month. Although, the lowest salary can be 730 XCD per month.
Thus, you need an Employer of record in Montserrat to help you define the salaries for your employees.
$270 Minimum Wage per month
Payroll Contributions in Montserrat
Payroll Cycle
The payroll cycle in Montserrat is monthly. However, some employees in Montserrat receive their payments weekly or every two weeks.
13th Salary
There are no provisions regarding a 13th salary in Montserrat.
Employee Benefit in Montserrat
- Probation period.
- Notice period.
- Annual leave.
- Sick leave.
- Paternity leave.
- Maternity leave.
- Public holidays.
- Compassionate leave.
- Social security.
Given that benefits management can be complicated, it is best to opt for hr and payroll outsourcing.
Visa and work permit in Montserrat
Montserrat issues tourist visas, e-visa, work permits, and residence permits. In the case of foreigners that want to work in Montserrat, the employer has to apply for a work permit.
But, since the government encourages local hiring, the employer has to advertise the job and submit proof that no one can fill the position.
Thus, work permits are generally granted to skilled professionals or hard-to-fill positions. Therefore, the employer has to submit the employee’s personal information such as education, work experience, and more, to get the work permit.
With an Employer of record in Montserrat, you can get all the required visas for your foreign employees.
VAT in Montserrat
VAT in Montserrat is set at 15%. Expand confidently to Montserrat with the support of a Professional employment organization.
Working Hours in Montserrat
General
The normal hours of work in Montserrat is 8 hours per day.
So, with an employer of record, you can have better management of your employees' working hours.
Overtime
An employee that works more than the standard 8 hours has the right to receive compensation for overtime work. Consequently, the overtime rate should be 1 ½ times the basic rate of pay.
Moreover, if the overtime work is on a public holiday, the rate is double the basic rate of pay.
Also, an employee cannot work more than 4 hours of overtime per day. Thus, achieve better management of overtime hours with an EOR.
Working Week
The standard working week in Montserrat should not exceed 40 hours per week. Also, the employer must grant a rest period of at least 24 consecutive hours per week to their employees.
If you are looking for extra support, a PEO can be of great help.
Employee Termination in Montserrat
Termination Process
An employer may terminate an employee who is guilty of misconduct or any other valid reason in the law. However, the employer must be aware that there are prohibited grounds for dismissal such as race, age, sex, and others.
Since contract termination can be challenging, we recommend partnering with an Employer of record in Montserrat.
Notice Period
In Montserrat, the notice period has to be followed once the employee has completed 13 weeks of employment. It is as follows:
- 13 weeks to 2 years of service: one week.
- 2 to 5 years of service: 2 weeks.
- 5 to 10 years of service: 4 weeks.
- 10 to 15 years of service: 6 weeks.
- More than 15 years of service: 8 weeks.
Severance Pay
An employee has the right to receive severance pay if he or she has been dismissed due to redundancy. Thus, in this case, the calculation is as the following:
- 1 to 5 years of service: 2 weeks for every year of service.
- 5 to 10 years of service: 2 ½ weeks for every year of service.
- 10 to 15 years of service: 3 weeks for every year of service.
- More than 15 years of service: 3 ½ weeks for every year of service.
If you need assistance with severance pay calculation, you have to trust payroll outsourcing services.
Probation Period
The probationary period in Montserrat should not exceed six months in the case of supervisors. And, it cannot exceed three months in the case of all other employees.
By getting PEO services you can define the best probation period for your new employees.
Employee Leaves in Montserrat
Paid Time Offs
An employee has the right to take a holiday leave once he or she has completed a calendar year of employment with the same employer. So, the paid time off is as follows:
- Less than 10 years of service: minimum 2 weeks paid annual leave.
- 10 to 20 years of service: minimum 3 weeks paid annual leave.
- More than 20 years of service: minimum 4 weeks paid annual leave.
Calculating paid time off may be confusing. For this reason, you have to look for payroll outsourcing services.
Public Holidays
There are 11 national holidays throughout the year.
Vacation Holidays
There are 14 vacation holidays throughout the year.
Sick Days
An employee is eligible for sick leave after 13 weeks of continuous service. The sick leave should be no less than 24 days at full wages.
Paternity Leave
When a female employee is granted maternity leave, her husband or de facto spouse may apply for paternity leave.
Thus, the paternity leave will consist of two weeks with pay. But, the father must take it during her wife’s maternity leave or no later than 6 months from delivery.
An Employer of record in Montserrat can be your best support for managing employment leaves.
Paternal Leave
Other Leave
In Montserrat, there is a special leave for jury service and other civic purposes. In this case, the employee may request leave with full pay for said purposes.
Also, there is Compassionate Leave which consists of the following:
- 3 days of paid leave due to the death of his or her spouse, a parent, child, or sibling.
- 5 days of paid leave if the death of the relative has occurred abroad.
Maternity Leave in Montserrat
Female employees in Montserrat can request a paid maternity leave once they have completed a year of service.
Thus, the maternity leave should be of 3 months with pay at the normal rate.
And if the female employee has an illness or complication due to pregnancy or delivery, she may request 3 more months of leave. But she has to submit a medical certificate.
There are 90 leave throughout the year.