Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

East Caribbean Dollar
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Montserrat is a Caribbean British Overseas Territory. The island is located in the Leeward Islands, which are part of the Lesser Antilles chain in the West Indies. Montserrat is about 16 kilometers long and 11 kilometers wide, with a 40-kilometer coastline. Because of its similarity to coastal Ireland and the Irish ancestry of many of its residents, Montserrat is known as "The Emerald Isle of the Caribbean." Montserrat is the Caribbean Community's and Organization of Eastern Caribbean States' only non-fully sovereign full member. The previously dormant Soufrière Hills volcano in the island's south became active on July 18, 1995. The Georgian-era capital of Montserrat, Plymouth, was devastated by eruptions. Two-thirds of the island's population was forced to evacuate between 1995 and 2000, mainly to the United Kingdom, leaving less than 1200 people on the island in 1997. Volcanic activity continues to wreak havoc on the area around Plymouth, including its docking facilities, as well as the eastern side of the island near the former W. On February 11, 2010, the remains of H. Bramble Airport were buried by flows caused by volcanic activity. Because of the scale of the current volcanic dome and the potential for pyroclastic activity, an exclusion zone was placed, encompassing the southern half of the island to as far north as parts of the Belham Valley. Visitors are not allowed to enter the exclusion zone, but from the top of Garibaldi Hill in Isles Bay, a view of Plymouth's devastation can be seen. The Montserrat Volcano Observatory continues to closely track the volcano, which has been relatively quiet since early 2010. A new town and port are being built at Little Bay, on the island's northwest coast. While this work is being done, the government and companies are based in Brades.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Employers have the authority to take disciplinary action against employees, including dismissal, in conformity with the Code. A verbal warning; a written warning; a decrease in earnings or salary; a demotion; and dismissal are all examples of disciplinary action. Employers may not levy a fine or other monetary punishment against an employee as a form of disciplinary action or for any other reason. Employers may terminate an employee's employment if two medical practitioners declare that the individual is unsuitable to continue working due to a mental or physical impairment that has lasted at least six months and is likely to be permanent.

Notice period

Except in the case of summary dismissal, the minimum notice period required by an employer to terminate an employee's employment contract when the employee has worked continuously for thirteen weeks or more shall not be less than one week. The notice period must be at least two weeks if the period of continuous employment is thirteen weeks or more but less than two years. If the continuous employment period exceeds two years but does not exceed five years, the notice period must be at least four weeks. If the continuous employment period exceeds five years but does not exceed ten years, the notice period must be at least six weeks. If the continuous employment period exceeds ten years but does not exceed fifteen years, the notice period must be at least eight weeks. If the continuous employment period exceeds fifteen years, the notice period must be at least ten weeks.

Severance pay

When an employee's employment contract is terminated due to redundancy, he or she is entitled to the following severance pay from the employer. Where an employee has worked for more than one year but less than five years, he or she shall be compensated with two weeks pay for each year of service completed. Where an employee has worked for more than five years but less than ten years, the employee is entitled to 2.5 weeks pay for each year of completed service. Where an employee has worked for more than ten but less than fifteen years, he or she is entitled to three weeks pay for each year of completed service. Where an employee has worked for more than fifteen years, he or she shall be compensated with 3.5 weeks of pay for each year worked. For the purposes of calculating severance pay, the weekly rate of pay is the employee's highest weekly basic rate of pay during his or her employment with that employer.

Probation period

Probation shall not exceed six months for supervisory level employees and three months for all other employees.

07. Working hours



08. Minimum wage


The minimum monthly salary in Montserrat is currently set at 690 XCD.

09. Employee benefits


The Social Security program provides three types of benefits. The first are short-term benefits, which are usually provided for a limited period of time (no more than 26 weeks or 6 months) and are intended to replace lost work income. Sickness Benefit, Maternity Benefit, and Maternity Grant are examples of these.

Long-term benefits are pensions that are usually given for a period longer than 26 weeks, although they may also be one-time payments. These are the Age Benefit, the Age Grant, the Invalidity Benefit, the Invalidity Grant, the Survivors' Benefit, the Survivors' Grant, and the Funeral Grant.

Employment Injury Benefits are payments made as a direct result of an employment hazard. Employment Injury Benefit, Disablement Pension Benefit, Disablement Grant, Medical Expenses Benefit, Widow's Benefit, and Widower's Benefit are among them.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

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