Payroll and Benefits Guide Belize
Last updated: May 02, 2023
Contributions
Employer
Employer Payroll Contributions
|
8.13% |
0 BZD – 70 BZD |
|
8.13% |
70 BZD – 109.99 BZD |
|
8.13% |
110 BZD – 139.99 BZD |
|
7.54% |
140 BZD – 179.99 BZD |
|
7.03% |
180 BZD – 219.99 BZD |
|
6.69% |
220 BZD – 259.99 BZD |
|
6.45% |
260 BZD – 299.99 BZD |
|
6.27% |
300 BZD – 339.99 BZD |
|
6.12% |
340 BZD – 379.99 BZD |
|
5.96% |
380 BZD – 419.99 BZD |
|
5.81% |
420 BZD – 459.99 BZD |
|
5.65% |
460 BZD – 499.99 BZD |
|
5.50% |
500 BZD and above |
|
5.50% to 8.13% |
Total Employment Cost |
Employee
Employee Payroll Contributions
|
1.88% |
0 BZD – 70 BZD |
|
1.88% |
70 BZD – 109.99 BZD |
|
1.88% |
110 BZD – 139.99 BZD |
|
2.46% |
140 BZD – 179.99 BZD |
|
2.97% |
180 BZD – 219.99 BZD |
|
3.31% |
220 BZD – 259.99 BZD |
|
3.55% |
260 BZD – 299.99 BZD |
|
3.73% |
300 BZD – 339.99 BZD |
|
3.88% |
340 BZD – 379.99 BZD |
|
4.04% |
380 BZD – 419.99 BZD |
|
4.19% |
420 BZD – 459.99 BZD |
|
4.35% |
460 BZD – 499.99 BZD |
|
4.50% |
500 BZD and above |
|
1.88% to 4.50% |
Total Employer Cost |
Employee
Employee Income Tax
|
25% |
On income from 26,000.01 BZD and above |
Employer taxes
Employee taxes
Minimum Wage
General
The national minimum hourly wage in Belize is 5.00 BZD.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
Employees can be paid on a weekly, bi-monthly, or monthly basis.
13th Salary
It is not mandatory or customary to pay 13th-month payments in Belize
Working Hours
General
In Belize, the standard working hours per week consists of a maximum of 45 hours, 9 hours per day, and all employees are entitled to at least one day of rest per week.
Overtime
Overtime is due for any time worked over 9 hours and is generally paid at 150.00% of the regular salary.
Some industries/jobs have specific hourly maximums per day in relation to when overtime pay starts, such as the Shops Act states overtime begins after 8 hours, in contrast to the Labour Act which states overtime starts after 9 hours.
Should an employee need to work on an assigned rest day or public holidays, compensation must be paid at 150% of the ordinary salary rate, except when required to work on Christmas Day, Good Friday, or Easter Monday. The employer must pay the compensation rate at a minimum of 200% of the ordinary salary rate. Time off in lieu is occasionally offered as an alternative.
Working Week
Monday-Friday
Leave
Paid Time Off
Employees are entitled to 2 working weeks of paid leave per year. In general, employees will take these two weeks consecutively; if not, the employer and employee need to agree on splitting the leave into two separate leave periods.
Where the employee takes an annual holiday in one period, the average pay shall be paid no later than the day preceding the start of the leave. If it’s taken in two periods, the employer will split the holiday pay into two equal payments; both are still paid the day immediately before the start of both leave periods.
Public Holidays
There are 13 public holidays
Sick Days
Sick Days
Once an employee has worked for a company for a minimum of 60 days within the last 12 months, they are entitled to 16 days paid sick leave at their basic rate of pay. All sick leave must be validated by the production of a medical certificate from a medical professional within 48 hours of the start of the sick period.
The first 16 days are paid for by the employer, with the employer paying the difference between payments made by the Social Security Board (SSB) and the employee’s basic pay rate. After the 16 working days of illness, the SSB will pay the payments following the Social Security Act. Labor Act; Sec 131.
Maternity Leave
Insured women are entitled to receive maternity leave and payments based on specific eligibility requirements.
Provided that during the preceding 12 months the employee was employed by the same employer for a period of not less than 150 days, she’ll be entitled to a maximum of 14 weeks of paid maternity leave. Seven weeks paid before birth and seven weeks after.
The maternity pay is calculated based on 80% of the average weekly Insurable Earnings of the insured woman in 39 weeks before maternity leave commences. The minimum benefit is 44.00 BZD per week and 384.00 BZD per week at a maximum.
PAID MATERNITY LEAVE (DAYS)
Paternity Leave
Paternity leave is not required by law.
Parental Leave
Parental leave is not required by law.
Other Leave
There are no other leave types required by law in Belize.
Termination
Termination Process
The termination process is standard in Belize, with notice periods required unless an employer can provide sufficient cause for dismissal without notice due to misconduct, disobedience, lack of skill, neglect of duties, or absence without permission.
Notice Period
The length of employment determines the amount of notice period required by an employee as below:
- Over 2 weeks to 6 months – 1 week notice
- Over 6 months to 2 years – 2 weeks’ notice
- Over 2 years to 5 years – 4 weeks’ notice
- Over 5 years – 8 weeks’ notice
Severance Pay
Severance pay is calculated based on the employee continuous employment by any employer for a period of
(a) five to ten years and
(i) the employer terminates employment, or
(ii) the worker retires on or after attaining the age of sixty years or on medical grounds,
that worker shall be paid a severance pay of one week’s wages in respect of each complete year of service; or
(b) over ten years, and his employment is
(i) terminated by the employer for reasons, which do not amount to dismissal, or
(ii) ended because the worker retires on or after attaining the age of sixty years or on medical grounds,
(iii) worker abandons the service of an employer for good and sufficient cause, or
(iv) a worker who resigns after a minimum of 10 years is eligible for a gratuity equal to severance pay, or
(v) terminated on the expiration of a contract for a definite period.
That worker shall be paid a severance pay of two weeks’ wages for each full year of service.
Due to changes in legislation, where an employee has completed over ten years of continuous employment, the severance pay shall be calculated as follows:
- For the period served before 1st May 2011 at the rate of one week’s pay for each complete year of service
- For the period served after 1st May 2011 at the rate of two weeks’ pay for each full year of service.
In the case of casual workers, they must work an aggregate of one hundred and eighty (180) days in a year to be entitled to severance pay.
Probation Period
The first two weeks of employment are considered a probationary period.
VISA
VISA
A work permit is required before any foreigner can work in Belize.
The Ministry of Labor process and approve the issuing of work permits for three months to 12 months. The Immigration Department and the permit fee can range from 100.00 BZD to 600.00 BZD depending on the person’s level of skill.
After obtaining and completing the form, the applicant will need:
- Three passport-size photographs (signed on the back)
- A letter from the Mayor of San Pedro regarding the nature of the employment request
- A letter from the Belize Tourist Board regarding the nature of the employment request
- If an employer is seeking the permit on behalf of the future employee, the employer will request them to attend an interview to prove that a Belizean cannot fill the position.
- Proof of residence in Belize for at least six months.
VAT
General
There is no VAT in Belize however, there is a standard GST rate is 12.50%
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Payroll and Benefits Guide
in Belize
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Day | Date | Holiday | Notes |
|---|---|---|---|
| Sunday | Jan-1 | New Year's Day | |
| Thursday | Mar-9 | Baron Bliss Day | |
| Friday | Apr-7 | Good Friday | |
| Saturday | Apr-8 | Holy Saturday | |
| Sunday | Apr-9 | Easter | |
| Monday | Apr-10 | Easter Monday | |
| Monday | May-1 | Labor Day | |
| Wednesday | May-24 | Commonwealth Day | |
| Sunday | Sep-10 | Saint George's Caye Day | |
| Monday | Sep-11 | Saint George's Caye Day | In lieu |
| Thursday | Sep-21 | Independence Day | |
| Thursday | Oct-12 | Day of the Americas | |
| Sunday | Nov-19 | Garifuna Settlement Day | |
| Monday | Nov-20 | Garifuna Settlement Day | In lieu |
| Monday | Dec-25 | Christmas Day | |
| Tuesday | Dec-26 | Boxing Day |
I want to know if i should get a week pay if i worked for a company 3 months and they fired me
An employer is not required to pay severance to an employee who has only completed 3 months of employment.
I would like to know if I should get paid after 2 years part time anđ then following 2 years full time. After the pandemic hit the job was on pause after 2 months got called back to work and did so until 30th of december 2020 which I was then never called back to work
It is only after five years of continuous employment that employees in Belize receive severance.
Are independent contractors under these same laws and regulations as employees?
Hi Mallory, Independent Contractors will not be entitled to the same benefits are regular employees. Before hiring a contractor, the company should review the legal requirements with a local legal expert to ensure hiring is done compliantly.
What should we do if the employer doesn’t pay for the required 2 week leave a year?
If an employer in Belize does not pay for the required two weeks of annual leave, employees may take the following steps:
1.Negotiate with the employer: Employees can try to resolve the issue by speaking directly with their employer and explaining the situation.
2.Contact the Ministry of Labour: If a resolution cannot be reached through negotiation, employees can contact the Ministry of Labour in Belize, which is responsible for enforcing labour laws and ensuring that employers comply with their obligations.
3.File a complaint: If the issue remains unresolved, employees can file a complaint with the Ministry of Labour. The Ministry will then investigate the complaint and may take action against the employer if it finds that the employer has violated the law.
4.Take legal action: As a final resort, employees may choose to take legal action against their employer if the employer continues to refuse to pay the required leave.
It is important to keep in mind that the exact process for resolving disputes over annual leave in Belize may vary and it is advisable to seek advice from a local employment law expert.
Do I get service pay after 8 years
In Belize, a worker with 8 years of employment shall be paid a severance pay of one week’s wages in respect of each complete year of service.
HOW MUCH HOLIDAY PAY IS AN EMPLOYEE ENTITLED TO AFTER HE WORKED FOR FIVE YEARS AND THREE MONTHS AS WAS TERMINATED
A worker receives one week’s wage for each complete year of service.
If I worked for 5 years and was paid 360, how much severance would I be paid for those 5 years of work?
Generally, termination pay out may vary depending on the dismissal circumstances, but as a general rule Severance pay is 2 weeks’ wages for each full year of service.
If I was asked to tender my resignation after 2 years and 4 month of service am I entitle to any payment
Hello, severance is only required by law after a continuous service length of 5 years.
Is severnce pay taxable??
Tax is applied based on total income per annum and applied according to the salary and tax thresholds in place.
Is it legal if a worker gets paid the annual vacation leave, but continues working during the two weeks and never takes the weeks off?
Hello, would you be able to provide more context? What do you mean by saying the annual leave has been paid but no days off have been taken? Why would this be the case? Thanks
Hi. I would like to know what should happen in a situation where an employee has worked somewhere for a year and plans to resign? I know about the 2 weeks notice but what happens if employee leaves without the 2 week notice? And should employee be paid for the 2 weeks after if notice is given?
Hello,
When an employee decides to resign from their job, they are required to provide notice to their employer as outlined in Section 37(2) of the Labour Act.
Upon acceptance of the notice by the employer, it becomes the employer’s responsibility to settle all terminal benefits as stipulated by the Labour Act.
It is important to note that the employer does have the option to waive the two-week notice period. However, it is advisable to seek guidance from a local legal expert to fully understand the available options and consider the grounds that led to the resignation.
Consulting with a legal professional will help explore the possibilities and ensure compliance with relevant regulations.
Are there consequences for an employer being late repeatedly with salaries?
Hello, we don’t have any information to share, we advise you to seek local advise from legal local representatives.
If an employee resigns what gratuity are they entitled to
A worker who resigns after a minimum of 10 years is eligible for a gratuity equal to severance pay.
is one entitled to that final pay after working 9 months?
A worker who resigns must always be paid out for time worked and benefits earned. In terms of gratuity, a worker who resigns is only entitled after a minimum of 10 years service.
If i were to let go an employee who has more than 5 years working with me how much severance would i need to pay?
Workers with service between 5 to 10 years shall be paid a severance pay of two weeks’ wages for each full year of service. After 10 years service the severance is calculated differently.