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Salary and Compensation Insights

Explore salary structures and compensation details in Guyana

Market competitive salaries

Understanding the dynamics of market competitive salaries in Guyana is essential for both employers looking to attract top talent and employees seeking fair compensation for their skills and experience.

Influencing Factors

Several elements come into play when determining market competitive salaries in Guyana:

  • Industry: Certain sectors, such as oil and gas or banking & finance, often provide higher salaries due to their substantial contribution to Guyana's GDP.
  • Experience & Skills: Employees possessing specialized skills or extensive experience typically demand higher salaries compared to their less experienced counterparts.
  • Education: The level of educational qualifications can often influence salary competitiveness, especially in specialized professions.
  • Location: The geographical location of the job can also affect salaries. Remote or challenging locations may offer higher compensation to attract talent.
  • Company Size & Reputation: Larger, well-established companies are likely to offer more competitive salaries and benefits packages to attract and retain talent.

Minimum wage

Guyana has a government-mandated minimum wage, established under the Guyana Labour Act (Cap. 98:01). These regulations ensure that all workers receive a minimum level of compensation for their labor.

Minimum Wage Rates

The minimum wage is set nationally and applies to all workers in Guyana, regardless of gender or industry (unless otherwise specified by a wages regulation order). The current minimum wage rates, as of July 1, 2022, are:

  • GYD$60,147.00 per month
  • GYD$2,776.00 per day
  • GYD$347.00 per hour

These rates are calculated based on a standard workweek, with monthly wages being roughly 4.33 times the weekly rate and hourly wages being based on the standard number of hours worked per week.

Setting and Updating Minimum Wage

The authority to set and update the minimum wage resides with the Minister of Labour. This process involves:

  • Advisory Committee: The Minister may appoint an Advisory Committee to investigate and make recommendations on the appropriate minimum wage rates.
  • Ministerial Order: Based on the Committee's recommendations, the Minister can issue an order establishing the new minimum wage rates. This order requires approval by the National Assembly.

Exceptions and Additional Considerations

  • Wages Regulation Orders: In some cases, specific wages regulation orders might supersede the national minimum wage for particular sectors or occupations. These orders would outline their own minimum wage rates for those circumstances.
  • Collective Bargaining Agreements: Minimum wage regulations do not prevent workers from negotiating higher wages through collective bargaining agreements with their employers.

Bonuses and allowances

In Guyana, employee compensation extends beyond the base salary, encompassing various bonuses and allowances.

Legally Mandated Benefits (Guyana's Labor Act)

Employees who have completed at least a year of service are entitled to a severance allowance upon termination. The amount is calculated based on years of service, ranging from one week's wages for the first five years to a maximum of 52 weeks' wages.

Employees accrue vacation days based on their work schedule. Standard full-time employees earn one day off for every month worked. Additionally, all employees are entitled to 15 paid public holidays per year.

Common Allowances Offered by Employers

Work exceeding the agreed-upon hours is compensated at a rate of 1.5 times the basic hourly rate. Factory workers receive a premium for working on Sundays or public holidays. Some employers may provide meal vouchers or a dedicated allowance to help cover the cost of meals during work hours.

Potential Bonuses and Perks

Employers may offer bonuses tied to individual or company performance goals. Some companies may grant additional bonuses around holidays like Christmas or year-end. While not mandatory, some employers provide private health insurance as a benefit to their employees. In an increasingly digital world, some companies are offering flexible work arrangements, including the option to work from home.

Payroll cycle

In Guyana, understanding the payroll cycle practices is crucial for both employers and employees. This guide explores the common payment frequencies, legal requirements, and essential considerations for navigating payroll in the country.

Common Payroll Frequencies in Guyana

The most prevalent payroll frequencies in Guyana include bi-weekly (every two weeks) and monthly payments. The bi-weekly option is a popular choice for many businesses, offering employees regular payments. The monthly practice provides employees with a larger, once-a-month paycheck. Less frequent options, like semi-monthly or quarterly payments, may also exist in some sectors.

The Ministry of Labour governs employment and payroll practices in Guyana. Key legal aspects to consider include the right of employees to receive payslips with details like gross pay, deductions, and net pay. The Factories, Shops and Offices Act, Cap. 95:08 outlines payslip requirements. Employers are also responsible for withholding income tax and National Insurance Scheme (NIS) contributions from employee salaries and remitting them to the Guyana Revenue Authority (GRA) and NIS, respectively. The Income Tax Act, Cap. 81:01 establishes income tax regulations.

Additional Considerations for Payroll in Guyana

Besides legal requirements, some additional factors to consider for a smooth payroll process include public holidays and leave entitlements. Guyana observes several public holidays throughout the year. Payroll should be processed considering these holidays to ensure timely payments. Employees accrue leave entitlements, such as vacation and sick leave. The employer's payroll system should account for these leaves and adjust payments accordingly. Traditional payment methods like checks are still used, but electronic bank transfers are becoming increasingly popular for faster and more secure transactions.

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