Understanding market competitive salaries is crucial for both employers and employees in Seychelles. Offering competitive compensation attracts and retains top talent, while employees can ensure they're being fairly valued for their skills and experience.

Factors Influencing Market Competitive Salaries

Several factors influence market competitive salaries in Seychelles:

• Job Title and Level: The specific job title and its seniority significantly impact salary expectations. For instance, a Marketing Manager will command a higher salary than an Event Manager.
• Education and Experience: Educational qualifications and relevant work experience play a major role. Employees with higher degrees and extensive experience can expect a premium on their base salary.
• Industry and Company Size: Salaries can vary depending on the industry. Finance and Technology tend to offer higher salaries compared to Hospitality or Education. Additionally, larger companies often have more resources to offer competitive salaries.
• Location: Geographic location can influence salaries. Working in remote areas or on specific islands within Seychelles may warrant a higher base salary.

The minimum wage in Seychelles is determined by the Employment (National Minimum Wage) Regulations, 2007. These regulations specify the minimum hourly rate an employer is required to pay their workers.

Who is Covered by the Minimum Wage?

The minimum wage applies to the following categories of workers:

• Workers under a contract of continuous employment
• Workers under a contract for a fixed term
• Part-time workers

However, it's important to note that trainees are not entitled to the minimum wage.

Minimum Wage Rates

The minimum wage in Seychelles is set as an hourly rate. There are two different rates depending on the type of worker:

• All workers except casual workers: SCR 38.27 per hour (effective January 1, 2020)
• Casual workers: SCR 44.10 per hour (effective January 1, 2020)

What is a Casual Worker?

The regulations do not provide a specific definition of a casual worker. However, based on the higher minimum wage rate, it can be inferred that casual workers are likely those employed for short-term or sporadic work arrangements.

Important Exclusions

The minimum wage only applies to the basic wage paid to the employee. The following are not included in the minimum wage calculation:

• Overtime work or shift allowances
• Benefits provided by employers such as housing, transport, and food

In Seychelles, employee compensation often extends beyond the basic rate. Many employers offer a variety of bonuses and allowances to attract and retain talent.

13th Month Pay

One of the most significant benefits mandated by law in Seychelles is the 13th-month pay. This is essentially an extra month's salary paid to employees as a bonus, typically around December.

Overtime Pay

Employees are legally entitled to overtime pay for working beyond their standard hours. The maximum allowed overtime is 60 hours per month. The specific overtime rate may vary depending on the employment contract but is generally higher than the standard hourly rate.

Shift Allowances

Working non-standard hours often comes with shift allowances. These allowances are intended to compensate employees for the inconvenience of working nights, weekends, or public holidays.

Performance-Based Bonuses

Many companies in Seychelles offer performance-based bonuses to incentivize employees and reward exceeding targets or achieving set goals.

Housing Allowance

Due to the high cost of housing in Seychelles, some employers offer housing allowances to help ease the burden on employees. This can be a fixed monthly amount or a contribution towards rent.

Transportation Allowance

Companies may also offer transportation allowances to cover commuting costs, especially if the workplace is located outside major city centers.

Meal Allowances

Some employers provide meal allowances to help offset the cost of meals during work hours. This can be a daily stipend or subsidized meals at the workplace canteen.

Private Health Insurance

While Seychelles offers universal healthcare, some companies may provide private health insurance as an added benefit, offering access to a wider range of medical services or faster treatment times.

These are just some of the common bonuses and allowances offered in Seychelles. The specific benefits offered by an employer can vary depending on the industry, company size, and position.

In Seychelles, a well-defined payroll cycle is adhered to for employee compensation. It's crucial for both employers and employees to understand these practices.

Frequency of Payment

Employees in Seychelles are typically paid their salary once a month, at a predetermined date. This standard payroll cycle is monthly.

Statutory Requirements

Seychelles has specific legal requirements that employers must adhere to during the payroll cycle, as outlined in the Employment Act, 2006. These include:

• Timekeeping: Employers are required to maintain accurate records of employee working hours, including regular hours, overtime worked, and leave taken.
• Deductions: Permitted deductions from employee salaries include income tax, social security contributions, and any mandatory union dues. Employers must ensure these deductions are calculated and withheld accurately.
• Payslips: Employees have the right to receive payslips with a breakdown of their earnings, deductions, and net pay amount.

Additional Considerations

There are some other noteworthy aspects of payroll practices in Seychelles:

• 13th Month Pay: A unique feature of the Seychellois payroll system is the mandatory 13th-month pay. This is essentially an extra month's salary paid as a bonus, typically around December. This bonus payment is factored into payroll calculations throughout the year.
• Payment Methods: Salaries can be paid through bank transfers, checks, or cash, depending on the employer's preference and the employee's agreement.