St. Kitts and Nevis: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in St. Kitts and Nevis.

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Overview

Saint Kitts and Nevis is a two-island country covering approximately 269 square kilometers of land in the West Indies. The two islands border the Caribbean Sea and the Atlantic Ocean. The economic sectors that are pillars of Saint Kitts and Nevis are the tourism industry, the agricultural sector, and the services sector. Some of the trade organizations that Saint Kitts and Nevis are members of the United Nations (UN), the Organization of Eastern Caribbean States (OECS), the Caribbean Community (CARICOM), and the Organization of the American States (OAS).

Do your organization's expansion plans require hiring employees in St. Kitts and Nevis? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo – one of the top Global payroll providers, assists organizations worldwide with onboarding and managing employees in St. Kitts and Nevis - processing payroll, managing local compliance requirements, benefits, and more.

Tools And Instances

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Global Payroll

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Basseterre

Currency

East Caribbean Dollar

Official Language

English

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+868

Other Languages

Saint Kitts Creole

Time Zone

UTC - 04:00

Global Payroll

Overview

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. 

 

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll.  Cloud-based payroll service providers, like Neeyamo, assess payroll industry trends and offer a consolidated solution in its Global Payroll Technology Stack, making outsourcing payroll cost per employee easier.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the welfare of the general population.

Employee Taxes

For employees between the ages of 16 and 62, five percent (5%) is deductible from their wages by their employer, while only 1% is payable for persons under 16 and over 62 years of age.

Hence, total Employee Contribution is 5%

Thus, a total of eleven percent (11%) is payable for an employee between the ages of 16 and 62

Employer Taxes

Five percent (5%) of the employer’s resources are paid, along with a further one percent (1%) for employment injury coverage.

Hence, total Employer Contribution is 6%

Payroll Cycle

Overview

Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.

Frequency

In Saint Kitts and Nevis, the pay cycle for government workers is typically bi-weekly. However, specific information about the pay cycle for private sector employees is not readily available.

13th Month Cycle

There is no statutory requirement to pay the 13th or the 14th month salary.

Global Work

Overview

An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance, payroll taxes, and employee benefits to comply with local tax laws and regulations.

This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The minimum wage increased from $9 per hour to $10.75 per hour, and from $360.00 per week to $430.00 per week.

Overtime

Any work over 40 hours per week is considered overtime, and Payment for overtime will be calculated at 1.5 times the regular rate on weekdays and double the regular rate on Sundays, Public Holidays, and Rest Days. However, if Sunday is included in a scheduled shift arrangement, it will be compensated at 1.5 times the regular rate.

Data Retention Policy

Every employer shall keep records of the remuneration, periods of employment, and paid holidays of every worker employed by him in such form as the Labor Commissioner may prescribe. Such records shall be preserved by the employer for at least three years.

Hiring and Onboarding Requirements

Hiring

Workers shall enjoy adequate protection against acts of anti-union discrimination in respect of their employment.

According to the  Abolition of Forced Labor Convention 1957, the following are considered forms of discrimination for the purposes of this Convention: 

  1. Any discrimination, exclusion, or preference based on race, color, sex, religion, political opinion, national extraction, or social origin that has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation
  2. Any other discrimination, exclusion, or preference that may be determined by the Member concerned after consultation with representative employers' 

Onboarding

Personal Information:

  • Completed employment application form
  • Government-issued photo ID (e.g., passport, national ID card)
  • Proof of address (e.g., utility bill, rental agreement)
  • Emergency contact information

Educational and Employment Verification:

  • Copies of educational transcripts or diplomas
  • Employment verification letters from previous employers (if applicable)
  • Professional certifications or licenses (if applicable)

Immigration and Work Authorization:

  • Work permit application (if applicable)
  • Proof of citizenship or legal residency in St. Kitts and Nevis
  • Social security number (if applicable)

Benefit Enrollment Documents:

  • Beneficiary designation forms for life insurance and health insurance
  • Salary deduction authorization forms for benefits contributions
  • Tax exemption certificates (if applicable)

Additional Documents:

  • Completed background check authorization form (if applicable)
  • Direct deposit authorization form for payroll
  • Company policies and procedures acknowledgment form
  • Confidentiality agreement (if applicable)

Probation

The probationary period means a period not exceeding one month in the case of household employment and three months in other employment.

Leave

National Holidays

The following public holidays are observed in St. Kitts and Nevis

  • 1 January - New Year's Day        
  • 2 January - Carnival Day
  • 29 March - Good Friday        
  • 1 April - Easter Monday        
  • 6 May - Labor Day / May Day        
  • 20 May - Whit Monday        
  • 5 August - Emancipation Day        
  • 6 August - Culturama Day        
  • 16 September - National Heroes Day        
  • 19 September - Independence Day        
  • 25 December - Christmas Day        
  • 26 December - Boxing Day

Annual Leave

A worker is entitled to an annual paid holiday of not less than 14 days, excluding Sundays and Public holidays, on the completion of each year of employment.

Maternity Leave

An employee shall be entitled to thirteen weeks' maternity leave, at least two weeks up to and including the date of her confinement, and at least six weeks immediately from that date. In the case of illness medically certified arising out of the pregnancy or out of confinement, she shall be entitled to an additional period of leave not exceeding three months.

Sick Leave

Sickness benefits will only be paid if illness is certified for more than three consecutive days, excluding Sundays.

A claim for Sickness Benefit should be made no later than ten days from the day on which the claimant was examined by a doctor and given leave from work.

An insured person will be paid 65% of his/her average weekly wages.

Termination

Overview

Employment may be terminated in writing by the employee in the following circumstances:

  1. Without notice during the probationary period of the employee except as may otherwise be provided in writing in a contract of employment;
  2. Without notice where the employee is guilty of serious misconduct in or in relation to his employment,
  3. Without notice where the employee is guilty of misconduct in or in relation to his employment or the employee is no longer performing his duties satisfactorily:

    Provided that the employee has been warned in writing on at least two occasions within a period of six months indicating the nature of the misconduct or unsatisfactory performance of duties, and in the case of the last warning, the intention of the employer to terminate the services of an employee shall be indicated, where there is repeated misconduct or unsatisfactory performance of duty;

  4. Where a medical practitioner certifies that an employee is suffering from infirmity of the mind or body which is likely to be permanent, provided such infirmity lasted for a period of at least three (3) months;
  5. Where the employee has become redundant for the reason that:

    • the employer has discontinued or ceased to carry on all or part of his business,
    • the employer has modernized, automated, or mechanized all or part of his business,
    • the employer has reorganized his business to improve efficiency,
    • the employer finds that it is impossible for him to carry on his business at the usual rate or level due to a shortage of material or a mechanical breakdown or for any cause beyond his control;
    • the employer is forced to reduce his business due to lack of change or change in markets;
    • where the employer dies, and his business ceases to operate; or
    • where the business is liquidated by bankruptcy or otherwise.

Notice Period

An employer shall give an employee notice of termination of services of the employee on the following basis :

  1. an employee with three months but less than one year’s continuous service, one week;
  2. an employee with one year but less than five years continuous service, two weeks;
  3. an employee with five years but less than ten years of continuous service, three weeks;
  4. an employee with ten years but less than fifteen years of continuous service, four weeks;
  5. an employee with fifteen years of continuous service, eight weeks;
  6. any employee paid on a monthly basis who has less than fifteen continuous service, one month, and
  7. any employee paid on a monthly basis who has fifteen years of continuous service and over two months.

Severance Pay

Severance pay is calculated on the following basis:

  1. Two weeks per year in respect of the first five years of employment with the employer;
  2. Three weeks in respect of five to ten years of employment with the employer;
  3. Four weeks in respect of any period in excess of ten years.

A period of half a year or more is counted as a full year for purposes of severance pay.

There is a maximum payment of no more than fifty-two weeks of pay.

Visa

Overview

To work in St. Kitts and Nevis, foreign nationals must obtain a work permit and a business visa. The government of St. Kitts and Nevis offers two main types of visas: tourist and business.

Employees must obtain a business visa for entry if they plan to stay in the country for more than 90 days for business. The average processing time for visas is about two weeks, so ensure your employees apply with enough time to complete the transaction before they need to travel. After entering the country with the appropriate visa, employees will also need a work permit.

Applicants will need to supply information on their medical condition, including a Mantoux skin test and a test for syphilis. They will also need a police record from their current country of residence and a notarized passport identification page. As the employer, you’ll also need to provide some information to support the work permit application, including evidence that you’ve advertised the vacancy for at least three weeks before hiring a non-national employee. The application process can be slightly different for each employee, but you can follow some basic guidelines to most effectively manage visa requirements.

To obtain a work permit in St. Kitts and Nevis, the following documents and requirements are typically necessary:

  • Passport and Photos
  • Medical and Police Records
  • Employer Support
  • An official letter from the employer guaranteeing financial support during the applicant’s stay and outlining the length and purpose of the trip.
  • Evidence that the employer has advertised the vacancy for at least three weeks before hiring a non-national employee.

Employee Background Checks

Legal and Background Checks

General background checks, including criminal, education, employment, ID, civil, and credit checks, are available for Saint Kitts and Nevis.

Last updated on January 31, 2024

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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