Employer of Record in Bonaire, Sint Eustatius and Saba

An Employer of Record (EOR) in Bonaire, Sint Eustatius, and Saba legally employs workers on your behalf. This allows you to build a team in the islands without setting up your own local company. You find the talent, and the EOR handles the legal and HR responsibilities of employment. This includes payroll, taxes, benefits, and ensuring you follow local labor laws. An EOR, like Rivermate, is the legal employer, while you manage your team's day to day work.

How an Employer of Record (EOR) Works in Bonaire, Sint Eustatius and Saba

Using an EOR simplifies hiring in Bonaire, Sint Eustatius, and Saba. Here is how it works:

• You Find the Candidate: You recruit and select the person you want to hire.
• The EOR Hires Them: The EOR legally hires the employee through their local entity.
• Contracts and Compliance: The EOR creates and manages compliant employment contracts.
• Payroll and Taxes: They handle monthly payroll, tax withholding, and social security contributions.
• Benefits Administration: The EOR provides statutory benefits to your employees.
• HR Support: You get local HR support for any employment related questions.

Why use an Employer of Record in Bonaire, Sint Eustatius and Saba

Using an EOR in Bonaire, Sint Eustatius, and Saba helps you grow your business without the headache of setting up a local entity. It's a way to test new markets and hire talent quickly and legally. An EOR handles the complexities of local labor laws, which are based on Dutch law with local adjustments.

Here are some key reasons to use an EOR:

• Avoids Establishing a Local Company: You can hire employees without the time and expense of setting up a legal entity in the islands.
• Ensures Compliance: An EOR takes on the responsibility for compliance with local labor laws, contracts, payroll, and benefits.
• Reduces Risk: Misclassifying an employee as a contractor can lead to fines and penalties. An EOR helps you avoid these risks by correctly classifying your workers.
• Simplifies Payroll and Taxes: The EOR manages all aspects of payroll, including salary calculations, tax withholdings, and contributions. In Bonaire, Sint Eustatius, and Saba, employers contribute approximately 18.4% in payroll taxes.
• Provides Local Expertise: You get access to local HR and legal experts who understand the specific employment regulations of the islands.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Bonaire, Sint Eustatius and Saba 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 Bonaire, Sint Eustatius and Saba.

Hiring in Bonaire, Sint Eustatius, and Saba, collectively known as the BES islands, means navigating a unique legal framework. These islands are special municipalities of the Netherlands, so their laws are based on Dutch law but with local adjustments. This creates specific requirements for employment that you need to know. For European Union citizens, the process is simpler, as they don't need a work permit to be employed on the islands. Non-EU citizens, however, will require both a residence permit and a work permit.

Employment contracts & must-have clauses

When you hire employees in the BES islands, you can use two main types of employment agreements: fixed-term and indefinite. A fixed-term contract is for a specific period or project, while an indefinite contract has no set end date and is the standard type of employment agreement.

While verbal agreements can be legally binding, a written contract is highly recommended to avoid any confusion. Your employment contracts must include several key clauses to be legally sound.

• Identification of Parties: Full legal names and addresses for both you and your employee.
• Job Title and Description: A clear explanation of the employee's role and responsibilities.
• Start Date: The official first day of employment.

Probation periods

You can include a probationary period in your employment contracts, but there are rules. The probation period must be in writing. The maximum length of a probation period depends on the type of contract.

Working hours & overtime

The standard workweek in the BES islands is 40 hours, typically spread over five 8-hour days. The maximum number of work hours in a week is 40, calculated over a four-week period, with daily hours not exceeding ten.

Overtime is any work done beyond the standard hours. Including overtime, an employee's work hours should not exceed 50 hours per week, calculated over four weeks. Overtime pay is 150% of the normal hourly wage.

Public & regional holidays

Employees in the BES islands are entitled to paid time off for public holidays. There are general public holidays for all three islands, as well as island-specific holidays.

Public Holidays for Bonaire, Sint Eustatius, and Saba:

• New Year's Day
• Good Friday
• Easter Sunday
• Easter Monday
• King's Day
• Labour Day
• Ascension Day
• Whit Sunday
• Christmas Day
• Boxing Day

Regional Holidays:

• Bonaire: Bonaire Day (September 6)
• Sint Eustatius: Statia Day (November 16)
• Saba: Saba Day (First Friday in December)

Hiring contractors in Bonaire, Sint Eustatius and Saba

You can hire independent contractors for specific projects or specialized tasks. This can offer flexibility and save on the costs associated with full-time employees. However, it's important to correctly classify your workers.

Misclassifying an employee as an independent contractor can lead to significant legal and financial risks, including back taxes, unpaid benefits, and fines. An Employer of Record (EOR) can help you avoid these risks. An EOR legally employs workers on your behalf, ensuring compliance with local labor laws. This includes managing payroll, taxes, and benefits, which helps to correctly classify your workers and reduce your risk. By partnering with an EOR, you can confidently build your team in the BES islands without the complexities of local employment laws.

Understanding compensation and payroll in Bonaire, Sint Eustatius, and Saba, also known as the BES islands, is straightforward. These special municipalities of the Netherlands have their own distinct regulations. As an employer, you need to be aware of the payroll cycles, wage structures, and tax obligations to ensure you are compliant. This guide will walk you through the key aspects of running payroll in the Caribbean Netherlands.

Payroll cycles & wage structure

In the BES islands, the payroll cycle is typically monthly. Most employees receive their salary once a month, usually at the end of the month.

Your wage structure must meet the statutory minimum wage requirements. These rates are set by the Dutch government and are adjusted periodically. Beyond the basic salary, it is common to offer additional allowances. A holiday allowance, often 8% of the gross annual salary, is a statutory requirement.

Overtime & minimums

Work performed beyond the standard 40-hour work week is considered overtime. You must compensate employees for overtime at a higher rate. The typical overtime rate is 150% of the regular hourly wage. For work on a day of rest, the rate is 200%, and for public holidays, it can be 250%.

As of January 1, 2025, the minimum hourly wages for employees aged 21 and older are:

• Bonaire: $10.35
• Sint Eustatius: $10.41
• Saba: $10.30

Employer taxes and contributions

As an employer in the BES islands, you are required to make several contributions to social security and health insurance for your employees. For 2025, the total employer premium is 10.3% of the employee's gross salary.

Employee taxes and deductions

You are responsible for withholding income tax from your employees' gross salaries. The BES islands have a progressive income tax system. Employees also contribute to social security.

Here are the income tax brackets for 2025:

In Bonaire, Sint Eustatius, and Saba (the BES islands), you'll find that benefits and leave are a blend of Dutch regulations and Caribbean culture. As an employer, you need to know the specific rules for each island. This ensures you stay compliant and keep your team happy. This guide breaks down what you need to know about leave and benefits in the BES islands.

Statutory leave

When you employ someone in the BES islands, you are legally required to provide several types of paid leave.

• Vacation Leave: Your employees are entitled to a minimum of 15 paid vacation days per year.
• Sick Leave: If an employee is sick, you must pay their full salary for the first few days of their absence. After that, they may receive compensation from the Social Insurance Bank (SVB).
• Maternity Leave: Female employees get 16 weeks of maternity leave. This is typically taken before and after childbirth. The SVB pays their maternity benefits.
• Paternity Leave: Fathers are entitled to 5 days of paid leave after the birth of their child.

Public holidays & regional holidays

Your employees are entitled to a paid day off for official public holidays. If they have to work, you must pay them at a higher rate. Keep in mind that some holidays are unique to each island.

Typical supplemental benefits

To attract and retain the best talent, you can offer benefits that go beyond the legal requirements. Here’s a look at both statutory and non-statutory benefits.

How an EOR can help with setting up benefits

Setting up a benefits plan in the BES islands can be complex. Each island has its own rules and cultural expectations. An Employer of Record (EOR) can simplify this for you.

An EOR acts as the legal employer for your staff in the BES islands. They handle all HR tasks, including:

• Compliance: An EOR ensures your benefits packages comply with all local laws. This saves you from making costly mistakes.
• Administration: They manage everything from payroll to leave tracking. This frees you up to focus on your business.
• Local Expertise: An EOR understands the local market. They can help you create a competitive benefits package that attracts top talent.

Using an EOR makes it easier to hire and manage employees in Bonaire, Sint Eustatius, and Saba. You can build a talented team without the headache of navigating unfamiliar regulations.

Letting an employee go in Bonaire, Sint Eustatius, and Saba involves specific rules you need to follow. The process isn't the same as in the European Netherlands, so it's important to understand the local labor laws. To terminate an employment contract, you must have a valid reason and follow the correct procedures, which often require getting approval from the government's Labor Affairs Unit or the court. This ensures the termination is lawful and respects the employee's rights.

Notice Periods

When you terminate an employment contract, you must provide the employee with a minimum notice period. The length of this period depends on how long the employee has worked for your company. Giving proper notice is a mandatory step.

Here are the minimum notice periods for employers:

For the employee, the notice period is typically one month, unless you both agree to something different in the employment contract.

Severance Pay

In many cases, when you let an employee go, you need to provide severance pay. This is often called a "transition payment." An employee is usually entitled to this payment if you initiate the termination. The amount is calculated based on the employee's salary and their length of service.

How Rivermate handles compliant exits

At Rivermate, we make sure every part of the offboarding process is handled correctly and legally. We manage the complexities of termination so you don't have to.

Our process includes:

• Verifying Grounds for Termination: We ensure you have a valid and legally sound reason for the termination, whether it's for economic reasons, performance issues, or other causes.
• Managing Paperwork: We handle the necessary applications and communications with the Labor Affairs Unit or the court to get the required approvals for termination.
• Calculating Final Payments: We accurately calculate notice periods and any severance pay owed to the employee, ensuring you meet all financial obligations.
• Clear Communication: We facilitate clear and direct communication with the employee to ensure a smooth and professional exit process.

Working in Bonaire, Sint Eustatius, or Saba requires navigating a specific immigration process. These islands, collectively known as the BES islands, are special municipalities of the Netherlands. If you plan to work or stay for more than three months, you will need a residence permit. For most non-local hires, your employer must also secure a work permit on your behalf. The government requires employers to prove they couldn't fill the position with a local candidate first.

Employment visas & sponsorship realities

Getting a work permit for the BES islands depends on having a local employer to sponsor you. You cannot apply for a residence permit for work on your own; you need a sponsor, like an employer, to handle the application with the local authorities.

This is where an Employer of Record (EOR) comes in. An EOR can serve as your legal employer on the islands, managing payroll, taxes, and compliance. Crucially, the EOR acts as the necessary local entity to sponsor your work and residence permits.

Here’s what that process typically involves:

• Labor Market Test: The employer must first show that no suitable candidate could be found locally or within the Dutch or European Union labor markets.
• Work Permit (TWV): The employer applies for a tewerkstellingsvergunning (TWV), or work permit, for you.
• Residence Permit: Along with the work permit, you will need a residence permit to live on the islands long term.

For certain nationalities, an authorization for a temporary stay (MVV) may be required before you can enter the islands to complete the process. An EOR simplifies this complex journey by providing the required local sponsorship and expertise.

Business travel compliance

You can visit Bonaire, Sint Eustatius, and Saba for short-term business meetings without a work permit. Many nationalities can enter visa-free for up to 90 days for this purpose.

However, you must understand the limits of these visits. Business travel allows for activities like attending meetings, negotiating contracts, or exploring opportunities. It does not permit you to perform actual work. A short-stay visa or visa-free entry for business does not replace the need for a work permit if you plan to engage in productive employment.

When traveling for business, be prepared to show immigration officials the following:

• A passport valid for your entire stay
• Proof of onward or return travel
• Evidence of sufficient funds for your trip
• Documentation showing the purpose of your visit