Employer of Record (EOR) in Trinidad and Tobago

Currency

Trinidad/tobago Dollar

Capital

Port of Spain

Region

Americas

Language

English

Population

1399488

GDP

$22.08 billion

GDP growth

-0.0234

Ease of doing business

61.3

World GDP share

0.0003

1. Grow your team in Trinidad and Tobago with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Trinidad and Tobago , particularly if you don't have established local relationships. You can hire employees in Trinidad and Tobago effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

Table of contents

Grow your team with Rivermate as your Employer of Record (EOR)
Summary of the country
Public holidays
Types of leave
Employment termination
Working hours
Minimum wage
Employee benefits
Taxes
VISA and work permits
Why Rivermate?

2. Summary

Trinidad and Tobago, formally the Republic of Trinidad and Tobago, is the Caribbean's southernmost island republic. It is located 130 kilometers (81 miles) south of Grenada and 11 kilometers (6.8 miles) off the coast of northern Venezuela, and consists of the major islands Trinidad and Tobago as well as other more smaller islands. It borders Barbados to the northeast, Grenada to the northwest, and Venezuela to the south and west. Trinidad and Tobago is often seen as part of the West Indies. Some geographic definitions include Trinidad and Tobago as part of the Windward Islands and the Lesser Antilles, while others see Trinidad and Tobago as a distinct island group.

Trinidad was inhabited for centuries by indigenous peoples before becoming a province of the Spanish Empire upon Christopher Columbus' arrival in 1498. In 1797, Spanish governor José Mara Chacón abandoned the island to a British navy led by Sir Ralph Abercromby. During the same time period, Tobago changed ownership more than any other Caribbean island between Spanish, British, French, Dutch, and Courlander colonists. Trinidad and Tobago were given to Britain as distinct nations by the Treaty of Amiens in 1802 and merged in 1889. Trinidad and Tobago gained independence in 1962 and declared itself a republic in 1976.

Trinidad and Tobago has the third highest GDP per capita in the Americas, behind the United States and Canada, based on purchasing power parity (PPP). The World Bank classifies it as a high-income economy. Unlike other Caribbean states and territories, the economy is predominantly industrial, with a focus on petroleum and petrochemicals; most of the nation's income is generated from its huge deposits of oil and natural gas.

Trinidad and Tobago is noted for its African and Indian traditions, which are represented in its massive and well-known Carnival, Diwali, and Hosay festivals, as well as being the origin of steelpan, the limbo, and music genres such as calypso, soca, rapso, parang, chutney, and chutney soca.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Trinidad and Tobago is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Employees who have worked for the company for at least a year are eligible to two weeks of paid vacation.

Public holidays

There are 17 national holidays in the Trinidad and Tobago. For each of them, employees are entitled to paid time off.

Sick days

Employees in the Trinidad and Tobago are entitled to fourteen days of sick leave.

Maternity leave

Employees who are expecting a child are entitled to 14 weeks of paid maternity leave. The company is liable for paying the employee for one month of full salary and two months of half pay while on leave.

Paternity leave

There are no provisions in the labor laws in Trinidad and Tobago regarding paternity leave.

Parental leave

There are no provisions in the labor laws in Trinidad and Tobago regarding parental leave.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

An employment contract may be terminated by either the employer or the employee. Termination procedures, notice periods, and severance obligations are normally defined by the individual employment agreement or collective bargaining agreement.

For redundancy dismissals, certain rules apply. Employers must provide employees at least 45 days' notice before terminating them for redundancy and paying severance.

Notice period

The notice period is one month for the majority of employees who are paid monthly.

Probation period

There are no provisions in Trinidad and Tobago's labor laws requiring a strict application of probation periods of any length. Three months is a typical duration.

Severance pay

Severance pay begins at two weeks and increases in accordance with the employee's length of service. Employees who are laid off are entitled to severance pay. Employees must receive two weeks' pay for each year of service under the Retrenchments and Severance Benefits Act. Employees who have worked for their employer for five years or more receive two weeks' pay for the first four years and three weeks' pay for the fifth and subsequent years.

6. Working hours

There is no information about the working hours for this country.

General working schedule

Eight hours per day and forty hours per week, spread over five days, is the standard work period.

Overtime

Overtime is defined as any work performed in excess of the standard eight hours per day. An employee is entitled to 150 percent of their normal hourly rate for the first four hours of overtime. After the first four hours of overtime, employees are entitled to receive 200 percent of their normal rate.

Employees who work on holidays and off days are entitled to receive a wage equal to 200 percent of their regular wage. Any additional overtime is calculated at 300 percent of their normal rate.

7. Minimum wage

There is no information about the minimum wage for this country.

Trinidad and Tobago sets a National Minimum Wage of $17.50 per hour.

8. Employee benefits

There is no information about the employee benefits for this country.

Health insurance benefits are administered by the National Insurance Board of Trinidad and Tobago (NIBTT). Employees who contribute to the National Insurance System are eligible for benefits. Those earning $200 or more each week must register and contribute, although employees earning less may still participate. Employers also make a proportionate contribution.

Sickness payments under the NIBTT reimburse individuals who are unable to work due to illness. These may be paid for up to 52 weeks. Employees who are unable to work due to personal injuries are compensated via employment injury benefits. They provide many unique advantages:

Injury benefit: This is provided for up to 52 weeks as the individual heals from their injury.

Disablement benefit: If a person becomes disabled, this benefit is provided either monthly or as a lump amount.

Medical costs: The individual may get a cash payout to cover medical bills.

Death benefit: This is a monthly payment made to a person's dependents in the case of his or her death.

Public health services in Trinidad and Tobago are provided free of charge to both citizens and non-residents. However, public institutions often face equipment and medication shortages, as well as lengthy wait periods. Private facilities provide better treatment but at a premium expense, thus the majority of private facility patients are expatriates.

Residents of Trinidad and Tobago may also receive additional benefits under the NIBTT, such as retirement and burial benefits.

Retirement pension: Residents who have made 750 payments to the National Insurance System and retire between the ages of 60 and 65 are entitled for a retirement pension. They are automatically eligible at the age of 65, whether or not they have retired. The amount of the pension is determined by the amount of contributions made.

Grants for retirement: Residents who have made less than 750 payments to the National Insurance System, on the other hand, may get a one-time lump amount in the form of a retirement award. The grant must be at least $3,000 in value.

Funeral benefits: Funeral benefits pay for the costs of a funeral. Residents who have made at least 25 payments to the National Insurance System or were receiving work injury benefits at the time of their death are eligible for funeral benefits.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

The income of a Trinidad and Tobago resident company is taxed on a global basis. A non-resident corporation doing business in Trinidad and Tobago is taxed solely on revenue earned in or generated from Trinidad and Tobago, whether directly or indirectly.

The normal corporation tax rate is 30%, however this varies depending on the kind of company. The following are the current corporate tax rates:

For ordinary companies (excluding banks), the tax rate is 30 percent.

For petrochemical companies or companies licensed to carry on banking business, the tax rate is 35 percent.

For life insurance companies, the tax rates are 0, 15 percent, 25 percent, and 30 percent depending on certain criteria.

For petroleum production companies (petroleum profits tax), the tax rate is 50 percent.

For petroleum production companies (deep sea), the tax rate is 35 percent.

Individual income tax

Persons who are resident, usually resident, or domiciled in Trinidad and Tobago are taxed on their global earnings, whether or not they are transferred to Trinidad and Tobago. A non-resident person is taxed on income earned in Trinidad and Tobago, subject to the terms of double taxation treaties when applicable (DTTs).

Individuals having taxable income of less than TTD 1 million are taxed at a rate of 25%. The appropriate tax rate for chargeable income in excess of TTD 1 million is 30%.

VAT, GST and sales tax

VAT is levied on a broad variety of products and services. The standard cost for commercial supply is 12.5 percent.

Basic food and agricultural supplies, as well as crude oil, natural gas, and exporting products and services, are all zero-rated. Non-residents pay no tax on hotel accommodations and yachting services.

A variety of services are excluded, including financial services, real estate brokerage, residential rentals, and educational services. Certain financial services, on the other hand, are subject to a 15% transaction tax. VAT is not levied on imported inputs used by high-capital-intensive businesses.

For businesses producing commercial deliveries, the VAT registration threshold is TTD 500,000 for a 12-month period.

13.Opening a subsidiary in Trinidad and Tobago

There is no information about the working hours for this country.

How to set up a subsidiary

If you decide to do the Trinidad and Tobago subsidiary establishment procedure on your own, you will need to choose the ideal location for your organization. Different cities or areas in Trinidad and Tobago may have their own subsidiary laws that affect the incorporation procedure. If you are unfamiliar with such rules and restrictions, consider engaging with a third party that can assist you in finding the best location for your business.

Following that, you must evaluate each subsidiary structure to determine which is appropriate for your objectives. You have the choice of forming a private limited company, a public limited company, or a branch office. A private limited company, often known as a limited liability corporation (LLC), is the most common option for businesses moving to Trinidad and Tobago.

The following stages are involved in forming an LLC:

1. Creating a legal entity and registering it with the company's registrar

2. Registering with the Inland Revenue Board (BIR)

3. Getting a BIR and a Pay As You Earn (PAYE) number

4. Registering as a National Insurance Employer within 14 days of employing the first employee

5. Purchasing a one-of-a-kind company name

6. Registering your company's name

7. Articles of Incorporation preparation and registration

8. Obtaining an Incorporation Certificate

Subsidiary laws

LLCs are subject to laws that vary from those of other companies. For example, at least two directors are required. The power to transfer shares between persons should be limited in your articles of incorporation, and the public should not be able to subscribe to shares or debentures. The amount of shares owned by each shareholder limits their responsibility.

Other subsidiary laws in Trinidad & Tobago include:

1. At least one shareholder is required.

2. There is no need for a minimum share capital.

3. Foreign ownership of up to 100% of the LLC is permitted.

4. An yearly shareholders meeting is required.

5. You must have a registered office that you will pay for on an annual basis.

6. A company secretary is required.

7. Tax returns must be filed on a yearly basis.

8. Accounts may need to be audited on occasion.