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$249/month
$49/month
2% of gross salary / month
Thinking about hiring in Barbados? This island nation is known for its beautiful beaches and rich culture and it also offers a thriving business environment. With a population of around 282,000 people, Barbados has a well-educated workforce and a growing economy that continuously attracts businesses from around the world. The country is known for its strong tourism sector, but it also has thriving industries in finance, manufacturing, and information technology.
Barbados is making great progress to become a hub for innovation and business. The government actively supports foreign investment and provides incentives for businesses that want to set up operations on the island. This makes it a great destination for companies looking to expand their global footprint.
Hiring in Barbados can be a smooth process if you understand the local labor laws and employment practices. Partnering with a Barbados Employer of Record (EOR) can simplify the process, allowing you to focus on building your team and growing your business. An EOR manages all the administrative and legal aspects of employment, ensuring that you stay compliant with local regulations while enjoying the benefits of a talented and motivated workforce. Whether you’re looking to hire locally or bring in international talent, Barbados offers a supportive environment for your business growth.
Hire in Barbados, and pay employees through our platform or app.
Our Barbados EOR solution is the most affordable on the market.
Fast Barbados onboarding, hire in as little as 24 hours.
We draft compliant Barbados labor contracts.
We manage all Barbados mandatory benefits.
It doesn’t stop with Barbados — we hire employees globally.
A Barbados Employer of Record is a third-party company that manages the legal and administrative responsibilities of employing workers in Barbados for your business. This means they handle tasks like payroll, taxes, benefits, and ensuring compliance with local labor laws. Essentially, the EOR becomes the official employer for your staff in Barbados, while you still manage their day-to-day tasks and overall performance. This arrangement allows you to focus on your core business activities without worrying about the complexities of local employment regulations.
The terms “Employer of Record” and “Professional Employer Organization” (PEO) are usually used interchangeably. Both refer to companies that take on HR tasks and legal responsibilities for other businesses. By partnering with an EOR or PEO, you can streamline your hiring process and ensure compliance with all local laws, making it easier to manage your workforce in Barbados.
Using a Barbados Employer of Record offers so many different benefits that can simplify and enhance the operations of your business.
Horizons stands out as a Barbados EOR through:
One of the principal reasons for engaging an EOR in Barbados is to ensure full compliance with Barbados’ employment laws. Here we explain in detail how a Barbados EOR ensures:
In Barbados, employment contracts are most often categorized into permanent and fixed-term contracts. Permanent contracts offer ongoing employment with no specific end date, providing job security and long-term benefits. Fixed-term contracts, on the other hand, are for a specific period or project, with a clear start and end date. These are usually only for temporary or seasonal work.
No probationary period.
At completion of the project.
Not applicable
Typically up to 6 months
Contract terms apply (period stipulated in the contract).
Contract shorter than 2 years: Not applicable
Contract longer than 2 years: 2.5 to 3 weeks' pay for each year, depending on the tenure.
Typically up to 6 months
2 weeks to 3 months
Less than 1 year: Not applicable
1 to 5 years: 2.5 weeks' salary per year of service
More than 5 years: 3 weeks' salary per year of service (maximum of 33 weeks' pay)
The standard working hours in Barbados are generally set at 40 hours per week, typically spread over five days. Most businesses operate from Monday to Friday, with each workday lasting around eight hours. Employees are entitled to regular breaks, including a lunch break. If employees work beyond the standard hours, it is considered overtime and must be compensated at a higher rate, usually 1.5 times the regular hourly wage. This ensures that employees are fairly compensated for any additional work that they perform.
150% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
In 2025, Barbados will observe several public holidays. On these days, employees have the day off with pay. If they are required to work on a public holiday, they must be compensated at a higher rate as per the country’s labor laws.
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 21 Jan 2025 | Error Barrow Day |
| 18 Apr 2025 | Good Friday |
| 21 Apr 2025 | Easter Monday |
| 28 Apr 2025 | National Heroes’ Day |
| 1 May 2025 | Labour Day |
| 9 Jun 2025 | Whit Monday |
| 1 Aug 2025 | Emancipation Day |
| 4 Aug 2025 | Kadooment Day |
| 30 Nov 2025 | Independence Day |
| 25 Dec 2025 | Christmas Day |
| 26 Dec 2025 | Boxing Day |
Employees in Barbados are entitled to paid time off, which includes vacation leave and public holidays. Full-time employees generally earn a minimum of 15 days of paid vacation per year, which increases to three weeks after ten years of service with the same employer. PTO policies should be clearly outlined in the employment contract, detailing how leave is accrued and the process for requesting time off.
no leave entitlement
15 days of paid leave annually
15 days of paid leave annually
15 days of paid leave annually
Sick leave in Barbados allows employees to take time off when they are sick without having to worry about missing out on pay. Full-time employees are generally entitled to a minimum of 10 days of paid sick leave per year.
(percentage of regular wages owed to the employee)
no leave entitlement
10 days of paid leave annually
10 days of paid leave annually
10 days of paid leave annually
If the employee is still unable to work, they may be eligible for an Invalidity Benefit.
If the employee is still unable to work, they may be eligible for an Invalidity Benefit.
If the employee is still unable to work, they may be eligible for an Invalidity Benefit.
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Female employees are entitled to 12 weeks (3 months) of maternity leave and must have been employed for at least 12 months with the same employer. Male employees are entitled to 2 weeks (10 working days) of paternity leave.
Both maternity and paternity leave come with job protection, meaning employees should be able to return to the same or a comparable position after their leave.
In Barbados, full-time employees are entitled to a minimum of 15 days of paid annual leave each year after completing one year of service. Employers can choose to offer more, but 15 days is the legal minimum. Annual leave should be scheduled in advance and agreed upon by both the employer and employee in order to ensure that business operations are not disrupted.
Termination of employment in Barbados must follow specific legal procedures to ensure fairness. Employers must provide notice or payment in lieu of notice, with the notice period depending on the employee’s length of service. For employees with less than one year of service, the notice period is almost always one week’s time. For anyone with a longer length of service, the notice period increases. Severance pay is required for employees terminated without cause, generally amounting to one week’s pay for each year of service.
Social security contributions are mandated under the National Insurance Scheme (NIS). These contributions provide various benefits, including sickness, maternity, unemployment, and retirement benefits.
There is a maximum limit on the earnings subject to NIS contributions, which is periodically adjusted. Currently, the insurable earnings ceiling is BBD 4,870 per month.
Social security system through the National Insurance Scheme (NIS) applies to foreign employees just as it does to local employees. Both employees and employers make contributions, and the benefits provided by the NIS cover a wide range of social security needs, including retirement, sickness, maternity, and employment injury. Foreign workers legally employed in Barbados are required to participate in the NIS and make the necessary contributions.
The tax system is progressive, meaning that the tax rate increases as income increases. Rates range from 12.5% to 28.5% depending on the tax bracket.
The Ministry of Health oversees the public healthcare system in Barbados, providing services through public hospitals, polyclinics, and health centers. Basic healthcare services at public facilities are generally provided at low or no direct cost to residents. This includes general medical care, hospital services, maternal and child health services, and treatment for common illnesses.
Private health insurance is available through local insurance companies. These policies can help cover the cost of private healthcare services and may include benefits such as hospitalization, outpatient care, specialist consultations, and emergency medical evacuation.
In Barbados, the government sets a minimum wage, which was set at BBD8.50 per hour in 2021. Employers are required to pay their employees on a regular schedule, typically bi-weekly or monthly. Overtime work must be compensated at a higher rate, usually 1.5 times the regular hourly wage.
The concept of a 13th month salary is not a standard practice in Barbados. Instead, bonuses and additional compensation are often performance-based or provided at the discretion of the employer.
Social security contributions in Barbados are essential for providing various social benefits, including pensions and healthcare. Both employers and employees contribute to the National Insurance Scheme (NIS). Employers deduct a certain portion of the employee’s salary and then match an additional amount. These contributions are regulated by the National Insurance and Social Security Act, ensuring that employees have access to benefits such as retirement pensions, unemployment insurance, and medical care.
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An Employer of Record in Barbados ensures compliance with local labor laws by staying updated on all the latest regulations and legal requirements. They handle everything from drafting legal employment contracts to processing payroll and managing taxes. The EOR makes sure that all employment practices meet local standards, reducing the risk of fines or legal issues. This allows you to focus on your business while knowing that all legal aspects are being managed properly.
Using an EOR for hiring in Barbados offers several key benefits. It simplifies the hiring process by taking care of all the administrative and legal tasks, so you can focus on finding the right talent. You can quickly hire local employees without needing to set up a local entity. Additionally, an EOR ensures compliance with local labor laws, reducing the risk of fines or legal issues. This makes expanding your business into Barbados much easier and lets you concentrate on growing your operations while the EOR handles the employment details.
Holiday Schedule in Barbados [2025]
