Employment Cost Calculator for Antigua and Barbuda
Calculate the total cost of employing someone in Antigua and Barbuda, including taxes, benefits, and our management fee.
Employer Tax Contributions
Tax Type | Rate (Employer) | Base |
---|---|---|
Social Security Scheme | 8% (Private Sector), 9% (Private Sector) / 8% (Public Sector) | Insurable earnings up to XCD 78,000 annually |
Medical Benefits Scheme | 3.5% | Employee's gross salary |
Education Levy | N/A (deducted from employee) | Employee's gross salary (tiered) |
Withholding Tax (PAYE) | Varies | Employee remuneration (employer withholds) |
Filing & Compliance
- Employers must register with the Inland Revenue Department (IRD) and the Social Security Scheme.
- Monthly returns and remittances for PAYE, Social Security, Medical Benefits Scheme, and Education Levy are due by the 15th day of the following month.
- An annual reconciliation of PAYE withheld for each employee must be submitted to the IRD, typically by March 31st.
In Antigua and Barbuda, employee tax deductions primarily consist of social security contributions and a corporate income tax for businesses. Personal income tax was eliminated.
Social Security Contributions
- Employee Contribution: 6% of insurable earnings.
- Employer Contribution: 8% of insurable earnings.
- Total Contribution: 14% of insurable earnings.
- Insurable Earnings: All earnings including basic salary, overtime, vacation pay, bonuses, commissions, housing allowances, and other incentives. There's a minimum threshold of the legal monthly minimum wage, and a maximum cap of EC$6,500 per month.
Corporate Income Tax
- Standard Rate: 25% of worldwide income for companies incorporated in Antigua and Barbuda.
- Tax Incentives: Certain sectors like international business companies (IBCs) engaged in offshore activities, and industries such as tourism and manufacturing may qualify for incentives and exemptions. It's essential to verify eligibility based on specific business activity and structure.
Other Deductions and Considerations
While personal income tax is not applicable, employers are responsible for deducting and remitting social security contributions to the Antigua and Barbuda Social Security Board. Employers must register with the board within seven days of hiring their first employee. It's crucial for employers to maintain accurate payroll records, issue payslips detailing all deductions, and comply with all reporting deadlines. Employee eligibility depends on citizenship status, relevant documentation, and work permits for non-citizens. Tax Identification Numbers are necessary for tracking and reporting. While not a deduction, understanding the former personal income tax allowances, such as EC$3,000 monthly/EC$36,000 annually, can provide context for overall compensation structuring.
It's important to note that this information is current as of today, February 5, 2025, and may be subject to changes in the future. Consulting with a tax professional is always recommended for personalized advice.