Barbados: 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 Barbados.

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Barbados is an eastern Caribbean island and an independent British Commonwealth nation. Bridgetown, the capital, is a cruise-ship port with colonial buildings and Nidhe Israel, a synagogue founded in 1654.

Neeyamo assists with the onboarding and management of employees in the Barbados along with the processing of a firm's payroll, compliance, benefits, and more.

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Global Work

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Facts And Stats




Barbados Dollar (BBD)

Official Language


Date Format


Country Calling Code


Time Zone

GMT -04:00

Global Payroll


Handling payroll for a wide-spread workforce can pose a major challenge for any firm. The added complication of compliance can make things worse and drastically affect the time and efforts that can be used in other equally important aspects of an organization's development.

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.

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

Personal Income Tax:

Taxable income is assessable income less allowable deductions.

The income tax rates are 12.5 percent on the first 50,000 Barbados dollars (BBD) (25,000 US dollars (USD)) of taxable income and 28.5 percent thereafter.

There is a basic personal allowance of BBD25,000 (USD12,500).

Taxable Income Tax on Column 1 (BBD) Tax on Excess (%)
0 - 50,000 6,250 12.5%
50,000   28.5%

The following Social Security contributions are made to National Insurance Scheme:

  • Employer-12.75%
  • Employee- 11.1%
  • Self-employed - 17.1%

Employer Taxes

Personal Income Tax:

Taxable income is assessable income less allowable deductions.

The income tax rates are 12.5 percent on the first 50,000 Barbados dollars (BBD) (25,000 US dollars (USD)) of taxable income and 28.5 percent thereafter.

There is a basic personal allowance of BBD25,000 (USD12,500).

Taxable Income Tax on Column 1 (BBD) Tax on Excess (%)
0 - 50,000 6,250 12.5%
50,000   28.5%

Payroll Cycle


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


The typical payroll cycle in Barbados is on a monthly basis.

13th Month Cycle

There is no statutory requirement to pay the 13th or 14th month. There is no evidence that it is customary. Instead, employers are only required and often do pay only the holiday entitlement.

Global Work


An Employer of Record services (EOR) provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a local registered entity and a local bank account, prior to making a job offer to an international hire.

 An Employer of Record services provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits ensuring compliance with local tax laws and regulations. 

This allows organizations to focus on collaborating with the employee in Singapore for operational tasks, with the knowledge that they have a cost-effective solution support their global HR and payroll requirements, as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The gross salary range for people working in Barbados is typically from 2,009 BBD (minimum salary) to 6,830 BBD (highest average, actual maximum salary is higher). 

This is the total monthly salary including bonuses. Salaries can vary drastically among different job categories.

  • Barbados in General labour rom 2,092 BBD (minimum salary) to 3,803 BBD
  • Household domestics and shop assistants $8.50
  • Agricultural workers and labourers in the agricultural sector $7.50
  • Daily paid factory, tourism and manufacture workers $7.50
  • Sales persons/cashiers $7.25
  • Shop assistants $6.75


The standard workweek in Barbados is 45 hours per week, 9 hours per day for five days in a week, or eight hours per day for six days in a week.

Overtime in Barbados

Work in excess of 40 hours is paid at a premium overtime rate

The rate for overtime is one and-a-half times the normal rate and double pay for public holidays.

Data Retention Policy

Employers collect employee data for various purposes, including compliance with laws, recruitment, promotion decisions, training, performance management, health and safety, and personal security. The Barbados Data Protection Act, 2019-29, legislates on handling personal and employee data, ensuring the dignity of workers, privacy, and fundamental rights. HR departments are responsible for employee personal data, including names, addresses, telephone numbers, national registration numbers, contact information, banking and payment details, mortgage details, drivers' licenses, personal insurance details, passport details, identification cards, medical information, employee photographs, and biometric data.

Hiring and Onboarding Requirements


Hiring employees in Barbados involves creating an employment contract, which should include job description, compensation, and working hours. This ensures clarity and understanding of expectations. Tax identification and the National Insurance Scheme (NIS) are also essential during the hiring process. Barbados has an online tax filing system called the Tax Administration Management Information System (TAMIS), which allows employers to submit contributions from paychecks for public insurance benefits.


Onboarding in Barbados crucial for acclimating employees to their new job and establishing a workplace code of conduct. Designing training programs that cover the job's difficulties, whether day-long or a week-long, is essential. No statutory regulation is required for employee probation periods.


However, there are no statutory restrictions for the probationary period in Barbados.


Public Holidays

January 1:New Year's Day
January 21:Errol Barrow Day
April 7:Good Friday
April 10:Easter Monday
April 28:National Heroes Day
May 1:Labour Day
May 29:Whit Monday
August 1:Emancipation Day
August 7:Grand Kadooment Day
SNovember 30:Independence Day
December 25: Christmas Day

December 26:Boxing Day


Annual Leave:

An employee who completes a year of employment with an employer is entitled to

  • an annual holiday of not less than 3 weeks where he has been in the employment of that employer for less than 5 years; and
  • an annual holiday of not less than 4 weeks where he has been in the service of that employer for 5 years or more.

Maternity Leave

Except where an employee otherwise desires, maternity leave shall be of a period of not less than twelve weeks and shall be so arranged that the employee is allowed

such period, not exceeding six weeks, as she desires before the expected date of confinement; and

a period of not less than six weeks from the date of confinement.

Paternity Leave

There is no paternity leave in Barbados

Sick Leave

There is no statutory entitlement to uncertified sick days in Barbados. It is up to the agreement between the employer and the employee. In the absence of a collective agreement, the number of sick days given to the employee is at the discretion of management.

Certified sick leave must be substantiated by a doctor’s certificate after two days’ absence.

Jury Duty Leave and Voting Leave

Employees are entitled to paid leave when summoned to serve on the Jury. Employees are required to report to work when excused by the judge from duty.

Bereavement Leave

Bereavement leave is granted at the employer’s discretion except when included in a Union agreement.



In Barbados, employees with at least one year of continuous service have the right to receive a written statement of their dismissals upon request. The Employment Rights Act (ERA) provides various notice periods depending on years of service and frequency. For employees with at least one year of continuous service, the notice period varies: weekly, daily, or weekly paid, with varying lengths depending on years of service and frequency.

Notice Period

The ERA Section 22 states that employees with at least one year of continuous service are entitled to a one-week notice period for employment periods exceeding 2 years but less than 5 years, 4 weeks for periods exceeding 5 years but less than 10 years, 6 weeks for periods exceeding 10 years but less than 15 years, and 10 weeks for periods exceeding 15 years.

Severance Pay

Severance pay is legally required for employees with 2 years of tenure dismissed for reasons such as redundancy, layoff/keep on short-time, and natural disaster. The amount of severance payment is 2.5 weeks' basic pay for each year up to 10 years, 3 weeks' basic pay for each year exceeding 10 years but not exceeding 20 years, and 3.5 weeks' basic pay for each year exceeding 20 years but not exceeding 33 years.



Immigration to Barbados is governed by visa requirements for certain countries, with some exceptions for those staying longer than 28 days. Foreign nationals and companies can establish companies in Barbados, but they must obtain work permits. CARICOM member countries' university graduates do not need work permits, but must obtain a certificate of recognition. All foreign nationals seeking work permits must apply. Work permits are non-transferable and can be canceled if the holder leaves the employer. Applicants must renew their work permits three to four months before expiration. Non-immigrant visas are issued for individuals who wish to retire or reside on the island. The process is lengthy and can take over a year. The government must assess the applicant's qualifications and entitlements before issuing a residence permit.

Employee Background Checks

Legal and Background Checks

Corporate background verification is crucial for risk and regulatory compliance in various industries. Our services ensure workplace safety and protect organizations from potential threats. Conducting thorough background checks on individuals before merging can make organizations more vulnerable. With partners in 125 countries, we offer customized employment screening solutions, providing comprehensive information for candidate assessment. Our commitment to client-focused, efficient, and comprehensive pre-employment screening ensures a secure and secure workplace. 

The below mentioned are the extensive range of corporation background verification services provided by us:

  • Socio economic status of the corporation for future partnership
  • Debt and credit history 
  • Criminal backgrounds and bank fraud check screening
  • Business license expiration dates Legitimate cases in courts
  • Company records Full profile research 
  • Registrar of company (ROC) records
  • Annual reports/returns
  • Balance sheet(profit/loss)
  • Vanishing companies records
  • Past links, associates and activities

Last updated on August 8, 2023.

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