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Salary and Compensation Insights

Explore salary structures and compensation details in Haiti

Market competitive salaries

Understanding market competitive salaries in Haiti involves considering the unique economic landscape of the country, where the formal and informal sectors are closely intertwined.

Formal Sector Benchmarks

In the formal sector, compensation trends across industries and positions can be gleaned from resources such as the Haiti Salary Survey by Kroll Consultants. These benchmarks are crucial for attracting and retaining qualified Haitian professionals.

Informal Sector Realities

On the other hand, a significant portion of the Haitian workforce is part of the informal economy. In this sector, income is often determined by factors such as experience, location, and negotiation skills. The concept of a "fair wage" in this context is highlighted by research from the International Trade Centre, which emphasizes the importance of considering living costs and alternative income opportunities when evaluating fair compensation.

Additional Considerations

Several factors influence market competitive salaries in Haiti:

  • Industry: Compensation varies across sectors. For instance, the finance sector may offer higher wages compared to agriculture.
  • Experience & Qualifications: Professionals with skills and experience typically command higher salaries.
  • Location: Urban centers like Port-au-Prince generally have higher wages than rural areas.
  • Foreign Investment: Multinational companies might offer salaries more aligned with international standards.

Minimum wage

Haiti's minimum wage is determined by the government and varies according to the industry and the nature of the work. The minimum wage tiers in Haiti are established through government decrees based on recommendations from the High Committee on Wages. As of February 21, 2022, the minimum daily rates are as follows:

Minimum Wage Tiers

  • Segment A Industries (Highest): HTG 770
  • Segment B Industries: HTG 615
  • Segment C Industries (Lowest): HTG 540
  • Domestic Workers (e.g., housekeepers): HTG 350
  • Export-Oriented Assembly Industries: HTG 685
  • Private Security Agencies & Petroleum Distribution: HTG 615
  • Private Vocational Schools & Private Health Institutions (over 10 employees with hospitalization services): HTG 615

Calculating Monthly Minimum Wage

The Haitian minimum wage is usually quoted as a daily rate. To calculate the monthly minimum wage, the daily rate is multiplied by the standard number of working days per month, which is generally considered 4.33 weeks (22 working days).

For instance, for someone working in Segment B industries, the monthly minimum wage would be:

HTG 615 (daily rate) x 22 (working days) = HTG 13,530

Important Considerations

The minimum wage is subject to periodic revisions based on economic factors such as inflation. Unions have been advocating for adjustments to reflect the rising cost of living.

Bonuses and allowances

Mandatory Bonuses in Haiti

Haitian law requires employers to provide a compulsory year-end bonus to all employees by December 31st of each year. This bonus is essentially an additional salary and must be at least equal to one month's wages or 1/12th of the employee's annual salary.

Optional Allowances in Haiti

While information on standardized allowances in Haiti is limited, some employers might offer additional benefits on top of the mandatory year-end bonus. These may include:

  • Overtime Pay: Employees working beyond standard working hours are entitled to overtime pay at a 50% surcharge on their regular wage. There's a quarterly cap on overtime hours, not exceeding 80 hours per quarter.

Payroll cycle

In Haiti, a standardized approach is followed for payroll cycles, ensuring employees receive their compensation on time and in compliance with legal requirements.

Monthly Payroll Cycle

The most common payroll cycle in Haiti is monthly. Employees receive their salaries once a month, which provides predictability and facilitates budgeting.

Mandatory 13th Month Pay

Haiti mandates a 13th-month salary as an additional benefit for employees. This is paid by employers between December 24th and 31st each year, irrespective of the employee's length of service. The 13th-month pay is equivalent to one month's regular salary, calculated as 8.33% of the annual income.

Payroll Taxes and Withholdings

Haitian law specifies certain payroll taxes that are withheld from employee salaries, as well as employer contributions. Here's a brief overview of the structure:

  • Employee Income Tax: This is a progressive tax system with different brackets. Income up to 120,000 Haitian Gourdes (HTG) is exempt, with tax rates increasing for higher income brackets, reaching 30% for earnings exceeding 1,000,000 HTG.
  • Social Security Contributions: Both employers and employees contribute 6% each month towards Old Age, Disability, and Survivors' insurance.
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