Employer of Record in Trinidad & Tobago

Guide to Hiring Employees in Trinidad & Tobago

Your guide to hiring employees in Trinidad & Tobago, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Trinidad & Tobago
Employer Of Record In Trinidad & Tobago

Capital City

Port of Spain

Currency

Trinidad & Tobago Dollar

 (

TT$

)

Timezone

GMT -4

Payroll Frequency

monthly

Tax Year

1 October - 30 September

Employer Tax

23.8 TDD - 276.2 TDD

Languages

English

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How to Hire Employees In Trinidad & Tobago

Hiring in Trinidad & Tobago for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Trinidad & Tobago in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Trinidad & Tobago.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Trinidad & Tobago’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Trinidad and Tobago's location in the Caribbean provides strategic access to regional markets and serves as a gateway to Latin America.

English is the official language, facilitating seamless communication for businesses operating in an English-speaking global market.

Trinidad and Tobago has a well-developed financial sector, providing support for businesses in banking, finance, and related industries.

The country is known for its significant energy resources, particularly in oil and natural gas, making it attractive for businesses in the energy sector.

Employment and Labor Laws in Trinidad & Tobago

Businesses can only operate smoothly in Trinidad & Tobago if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Trinidad & Tobago below, to avoid any compliance issues.

Employment Contract Requirements

In Trinidad & Tobago, employment can be verbal or written, with terms and conditions specified in individual contracts between employers and employees or in collective bargaining agreements negotiated with trade unions.

Onboarding Process

We can help you get a new employee started in Trinidad & Tobago quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Trinidad & Tobago

The standard working week in Trinidad & Tobago comprises 40 hours, equating to 8 hours per day.

Overtime in Trinidad & Tobago

In Trinidad & Tobago, overtime is paid according to the employment contract or collective agreements. When working beyond standard hours or on holidays, there are maximum limits. The first 4 overtime hours are compensated at 150%, while any hours beyond that are paid at 200%.

Probation Period in Trinidad & Tobago

In Trinidad & Tobago, the probationary period varies based on the role and is specified in the employment agreement. Typically lasting between 3-6 months, these probation periods are outlined in the employment contract.

Employer of Record in Trinidad & Tobago

An Employer of Record (EOR) acts as the legal employer for workers in Trinidad & Tobago, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Trinidad & Tobago is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Trinidad & Tobago's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Trinidad & Tobago's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Trinidad & Tobago's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Trinidad & Tobago's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Trinidad & Tobago

Fiscal Year in Trinidad & Tobago

1 October - 30 September is the 12-month accounting period that businesses in Trinidad & Tobago use for financial and tax reporting purposes.

Payroll Cycle in Trinidad & Tobago

The payroll cycle in Trinidad & Tobago is usually monthly, with employees being paid as stipulated in the employment agreement.

Minimum Wage in Trinidad & Tobago

The minimum wage for employees in Trinidad & Tobago is typically 17.50 TTD per hour, amounting to ~2,800 TTD per month for a typical 40 hour work week.

Bonus Payments in Trinidad & Tobago

In Trinidad & Tobago, the payment of a 13th-month salary is not obligatory, and bonuses are awarded at the discretion of the employer, typically based on performance.

Employment Taxes in Trinidad & Tobago

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 23.8 TDD - 276.2 TDD on top of the employee salary in Trinidad & Tobago.

Tax TypeTax Rate
National Insurance Scheme (based on the employee's weekly income)23.80 TTD - 276.20 TTD

Employee Payroll Tax Contributions

In Trinidad & Tobago , the typical estimation for employee payroll contributions cost is around 8.25% + 11.90 TTD - 138.10 TTD.

Tax TypeTax Rate
National Insurance Scheme (based on the employee's weekly income)11.90 TTD - 138.10 TTD
Health Surcharge8.25%

Individual Income Tax Contributions

Residents, ordinarily residents, or domiciled individuals in Trinidad & Tobago are subject to taxation on their worldwide income, regardless of whether these earnings are remitted to Trinidad & Tobago.

Income BracketTax Rate
0 - 1,000,000 TTD25%
1,000,001 TTD And above30%

Pension in Trinidad & Tobago

The Senior Citizens Pension (SCP) is a monthly pension benefit provided to individuals aged 65 and above, determined by their income and residency status. To qualify, applicants must have a monthly income not exceeding 4,500 TTD and must have been residents of Trinidad & Tobago for at least 20 years before the application date.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Trinidad & Tobago tailored to your needs.

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Work Permits & Visas in Trinidad & Tobago

Annual Leave & Company Policies In Trinidad & Tobago

Mandatory Leave Entitlement in Trinidad & Tobago

The annual leave entitlement in Trinidad & Tobago is 10 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Trinidad & Tobago

Trinidad & Tobago observes 14 public holidays annually, in addition to the standard annual leave:

Holiday Date
New Year's Day January 1
Spiritual Baptist / Shouter Liberation Day March 30
Good Friday Friday before Easter Sunday, date varies each year
Easter Monday Monday after Easter Sunday, date varies each year
Eid al-Fitr April, date varies each year based on the Islamic lunar calendar
Indian Arrival Day May 30
Corpus Christi Date varies each year, usually in May or June
Labour Day June 19
Emancipation Day of Trinidad & Tobago August 1
Independence Day August 31
Trinidad & Tobago Republic Day September 24
Diwali November, date varies each year based on the Hindu lunar calendar
Christmas Day December 25
Boxing Day December 26

Paid Time Off in Trinidad & Tobago

In Trinidad & Tobago, the allocation of annual leave is determined by the industry and sector in which the employee works, as outlined in their employment contract or collective agreement. Typically, private sector employees who have completed 220 days with one employer are entitled to 2 weeks of paid annual leave.

Maternity Leave In Trinidad & Tobago

In Trinidad & Tobago, pregnant employees with one continuous year of service are eligible for 14 weeks of paid maternity leave. In cases of pregnancy-related illnesses, this leave can be extended for an additional 4-12 weeks.

Paternity Leave In Trinidad & Tobago

Trinidad and Tobago does not have a statutory provision for paternity leave.

Sick Leave In Trinidad & Tobago

In Trinidad & Tobago, the sick leave entitlement for employees varies based on their industry, sector, and the terms specified in their employment contract or collective bargaining agreements. Generally, employees are entitled to 2 weeks of paid sick leave.

Parental Leave In Trinidad & Tobago

Trinidad and Tobago does not have a statutory provision for shared parental leave.

Employment Termination and Severance Policies in Trinidad & Tobago

Termination Process in Trinidad & Tobago

In Trinidad & Tobago, the termination process varies based on the terms outlined in the employment agreement and collective agreement. It is also contingent on the type of contract and the reasons behind the termination.

Notice Period in Trinidad & Tobago

The notice period for all employees in Trinidad & Tobago must be given at least 45 days before termination, in writing.

Severance in Trinidad & Tobago

Retirement and redundancy does not require an employee for severance pay in Trinidad & Tobago. Severance payments are contingent on the length of employment:

  • 1-5 years of service: 2 weeks pay for each year of service
  • More than 5 years of service: 3 weeks pay for each year of service

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Trinidad & Tobago

Questions and Answers

What Is an EOR in Trinidad & Tobago?

An Employer of Record (EOR) in Trinidad & Tobago is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Trinidad & Tobago without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Trinidad & Tobago Without an Employer of Record?

Yes, you can hire in Trinidad & Tobago without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Trinidad & Tobago.

How Much Does It Cost To Employ Someone In Trinidad & Tobago?

The cost of employing someone in Trinidad & Tobago includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Trinidad & Tobago. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Trinidad & Tobago?

As of January 1, 2024, Trinidad & Tobago's minimum wage rates are:

  • 17.50 TTD p/h TTD per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Trinidad & Tobago?

An EOR simplifies payroll management in Trinidad & Tobago by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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