Employer of Record in Antigua and Barbuda

Expanding your team to Antigua and Barbuda in 2025 presents a unique opportunity to tap into its local talent pool. Understanding the pathways to legally engage employees is crucial for a smooth and compliant expansion. While direct entity establishment is one method, other flexible solutions exist for companies looking to quickly and efficiently onboard talent in the Caribbean nation.

When considering hiring employees in Antigua and Barbuda, companies generally have a few primary options, each with its own set of requirements and implications:

• Establishing a Local Entity: This involves registering your company as a legal entity within Antigua and Barbuda, which requires navigating local corporate registration, tax, and labor laws, and setting up payroll, benefits, and compliance processes independently.
• Utilizing an Employer of Record (EOR): Partnering with a third-party service like Rivermate allows your company to hire employees in Antigua and Barbuda without needing to establish a local legal entity. The EOR handles all formal employment responsibilities.
• Hiring as an Independent Contractor: For short-term projects or specific consulting needs, engaging individuals as independent contractors can be an option. However, this requires careful classification to avoid misclassification risks under Antiguan and Barbudan labor laws.

How an EOR Works in Antigua and Barbuda

An Employer of Record simplifies global hiring by acting as the legal employer for your team members in Antigua and Barbuda. Your company retains full control over day-to-day management and assignments, while the EOR assumes the local employer responsibilities. This typically includes:

• Payroll Processing: Managing local payroll, ensuring timely and accurate salary payments, and handling all associated withholdings.
• Tax Compliance: Calculating and remitting all employer and employee taxes, including income tax and social security contributions, in accordance with Antiguan and Barbudan regulations.
• Benefits Administration: Administering mandatory benefits, such as social security, and facilitating additional benefits you wish to offer.
• Labor Law Compliance: Ensuring employment contracts, working hours, leave policies, and termination procedures adhere to Antigua and Barbuda's specific labor laws.
• HR Support: Providing local HR support and ensuring adherence to employment best practices.

Benefits for Companies

For businesses aiming to hire in Antigua and Barbuda without the complexities of establishing a local entity, an EOR service offers significant advantages:

• Rapid Market Entry: Hire employees quickly, often within days, without the lengthy process of local entity registration.
• Reduced Administrative Burden: Eliminate the need to manage local payroll, tax filings, and HR compliance internally.
• Cost Efficiency: Avoid the substantial costs associated with setting up and maintaining a foreign subsidiary.
• Compliance Assurance: Mitigate legal and compliance risks, as the EOR ensures all employment practices adhere to local regulations.
• Focus on Core Business: Reallocate internal resources to strategic initiatives, while the EOR handles the operational aspects of global employment.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Antigua and Barbuda includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Antigua and Barbuda.

Employers in Antigua and Barbuda must deduct and remit social security contributions and income tax under the PAYE system. Social security contributions are split between employer (~6.5%) and employee (~5.5%), with rates subject to change. Employers are also responsible for monthly remittance of income tax withheld, based on a progressive rate system, with income up to XCD 36,000 taxed at 0% and amounts above taxed at 25%. They must submit PAYE returns monthly and provide annual statements to employees.

Employees benefit from deductions such as pension contributions (up to specified limits), personal allowances, and other allowable expenses like education or medical costs. Employers and employees must adhere to reporting deadlines, with individual tax returns typically due by April 30th. Penalties for late filing or non-compliance include fines and interest charges. Foreign workers' tax obligations depend on residency status, and work permits are required. Double taxation agreements may offer relief, while foreign companies are subject to corporate tax, with potential incentives in certain sectors.

Salaries in Antigua and Barbuda vary by industry and experience, with the tourism sector dominating. Key salary ranges include:

The minimum wage in 2025 is set at 8.20 XCD per hour for general employment, with employers legally required to comply. Compensation packages often include bonuses such as performance, Christmas, and allowances for housing, transportation, and meals, especially in hospitality roles. Payroll is typically processed bi-weekly or monthly via bank transfers, with mandatory deductions for income tax and social security.

Salary trends indicate rising demand for skilled workers in sectors like technology and healthcare, alongside increases in tourism-related wages. Employers should anticipate adjustments in minimum wages and benefits to attract talent, aligning compensation strategies with economic growth and market developments.

Employees in Antigua and Barbuda are entitled to various leave types, with specific statutory minimums. Annual paid vacation leave depends on service length: less than 1 year is pro-rated, 1-3 years grants 14 days, and over 3 years provides 21 days. Vacation should be taken within 12 months, with possible carry-over but no legal requirement. Public holidays are paid days off, including major holidays like New Year's, Labour Day, Independence Day, and Christmas, with premium pay if worked.

Sick leave entitlements are 12 days for up to 1 year of service and 15 days thereafter, paid at the regular rate, with medical certification often required after a few days. Maternity leave lasts 13 weeks with about two-thirds salary coverage, typically after 12 months of employment; paternity leave is usually 2 weeks at full pay; adoption leave is similar to maternity leave but varies by employer. Additional leave types include bereavement (3-5 days), study, sabbatical, and emergency leave, generally at employer discretion.

Employers in Antigua and Barbuda are legally required to provide core benefits such as social security contributions, medical benefits through the Medical Benefits Scheme (MBS), minimum wage, paid vacation and sick leave, maternity leave, public holiday pay, and severance pay. These mandatory benefits establish a baseline of employee security and well-being. For example, social security contributions fund pensions and injury benefits, while the minimum wage is periodically reviewed to ensure fair compensation.

Beyond legal requirements, many employers enhance their packages with optional benefits like private health insurance, life insurance, retirement plans, professional development, transportation and housing allowances, and performance bonuses. These supplementary benefits help attract and retain skilled staff, especially in competitive sectors like tourism and financial services.

Key Data Points:

Employers should balance statutory obligations with competitive benefits to foster a positive work environment and support business growth.

Employment agreements in Antigua and Barbuda are essential for defining the employment relationship, ensuring legal compliance, and protecting rights. They typically fall into two categories: fixed-term contracts, which specify a set duration, and indefinite contracts, which continue until terminated. Clear clauses on job roles, compensation, working hours, confidentiality, non-compete, and termination are crucial for legal clarity and dispute resolution.

Employers should ensure employment agreements include key clauses such as job description, salary, working hours, probation periods, confidentiality, non-compete, and termination procedures to maintain compliance and foster positive employment relations.

Antigua and Barbuda is progressively adopting remote work, supported by technological growth and efforts to attract global talent. While there is no specific remote work legislation, existing labor laws such as the Employment Act, Social Security Act, Occupational Safety and Health Act, and Data Protection Act apply to remote workers. Employers should establish clear policies covering eligibility, working hours, performance, data security, and reimbursements to ensure compliance and productivity.

Flexible work arrangements are expanding, including options like telecommuting, part-time, and flexible hours, allowing employers to meet diverse employee needs. Key data points include:

This environment offers opportunities for employers to implement adaptable work models while adhering to legal and safety standards.

Employers in Antigua and Barbuda must adhere to the Labour Code when terminating employees, ensuring proper notice, documentation, and compliance with legal grounds to avoid disputes. Notice periods depend on continuous service: less than 1 year requires 1 week, 1–3 years 2 weeks, 3–5 years 4 weeks, and 5+ years 6 weeks. These minimums can be extended by employment contracts.

Severance pay is generally due for dismissals not related to misconduct, calculated based on years of service and weekly wages, with entitlement factors varying by tenure:

Termination can be for cause (misconduct, poor performance, breach of contract) or without cause (redundancy, economic reasons, closure). Proper procedures include documentation, written notice, opportunity to respond, and prompt payment of dues. Employees are protected against wrongful dismissal based on discrimination, lack of due process, unjust cause, or retaliation, with claims handled by the Labour Department or Industrial Court.

Antigua and Barbuda is witnessing a shift towards flexible work arrangements, with businesses increasingly hiring independent contractors and freelancers for specialized skills and project-based tasks. This trend provides companies with flexibility and access to a broader talent pool. However, it is crucial for businesses to navigate the legal and administrative frameworks to ensure proper classification and compliance, avoiding potential misclassification issues that could lead to legal and financial repercussions.

Correct classification between employees and independent contractors is vital, as misclassification can result in penalties such as back taxes and social security contributions. The classification is based on factors like control, integration, financial dependence, and provision of tools. A well-drafted contract is essential, detailing the scope of work, payment terms, and intellectual property rights to mitigate risks. Independent contractors are responsible for their own taxes and insurance, including registration with the Inland Revenue Department and managing social security contributions.

Independent contractors are prevalent in sectors such as tourism, professional services, construction, real estate, technology, media, and education. These roles reflect the dynamic nature of the economy and the global trend towards flexible work arrangements. Engaging entities must report payments to contractors to the IRD and ensure contracts include IP assignment clauses to secure ownership of work products.

Foreign nationals seeking employment in Antigua and Barbuda generally need a valid work permit, often accompanied by a visa, depending on nationality and employment duration. Employers must follow specific procedures, including demonstrating no suitable local candidates through a labor market test, submitting necessary documentation, and obtaining approval from the Department of Labour. The process typically takes 4 to 12 weeks and involves fees that vary based on the position and duration.

Key work permit requirements include a job offer, proof of advertising the position, police clearance, medical certificates, and company registration documents. Once approved, the permit specifies the job, employer, and duration. Foreign workers can transition to permanent residency through investment, marriage, or long-term employment (usually after 5 years). Dependents can apply for visas with proof of relationship and financial support.

Employers must ensure all foreign employees hold valid permits and comply with labor laws, while employees must adhere to permit conditions and report changes. Non-compliance can lead to fines, deportation, or penalties, emphasizing the importance of staying informed about immigration regulations.