Employer of Record in Haiti

Expanding your operations into Haiti in 2025 offers significant potential, but successfully establishing a workforce requires a clear understanding of the local employment framework. Adhering to Haitian labor laws, including those related to contracts, payroll, taxes, and benefits, is crucial for compliant and effective hiring.

Companies looking to hire employees in Haiti typically consider a few distinct methods to onboard talent:

• Establishing a local legal entity, which involves significant time and financial investment in registration, compliance, and ongoing administration.
• Partnering with an Employer of Record (EOR), such as Rivermate, which allows you to hire employees quickly and compliantly without establishing your own entity.
• Engaging independent contractors, a flexible option that avoids employer obligations but requires careful classification to ensure compliance with local labor laws.

How an EOR Works in Haiti

An Employer of Record (EOR) acts as the legal employer for your workforce in Haiti, handling all local employment responsibilities while you retain full control over day-to-day management and tasks. This model allows businesses to operate in Haiti without the burden of setting up a local entity. The EOR takes care of:

• Legal Employment: Serving as the legal employer for your Haitian team.
• Payroll Processing: Managing local payroll, ensuring timely and accurate payments.
• Tax Compliance: Handling all employer-related tax withholdings and remittances to Haitian authorities.
• Benefits Administration: Administering mandatory and supplementary employee benefits in line with local regulations.
• Labor Law Compliance: Ensuring adherence to all Haitian labor laws, including contracts, working hours, leave, and termination procedures.
• HR Administration: Taking care of essential HR tasks, from onboarding to offboarding, and maintaining employment records.

Benefits for Companies Looking to Hire in Haiti Without Establishing a Local Entity

Utilizing an EOR service provides a streamlined and compliant pathway for international companies to access Haiti's talent pool. Key benefits include:

• Rapid Market Entry: Hire employees in Haiti quickly, bypassing the lengthy process of entity establishment.
• Reduced Risk and Compliance: Mitigate the risks associated with navigating complex and evolving Haitian labor and tax laws.
• Cost-Efficiency: Avoid the substantial costs and administrative overhead of setting up and maintaining a local legal entity.
• Local Expertise: Benefit from the EOR's in-depth knowledge of Haitian employment practices and regulations.
• Focus on Core Business: Free up internal resources by offloading HR, payroll, and compliance burdens to the EOR.

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

Haiti's tax system, overseen by the Directorate General of Taxes (DGI), imposes specific obligations on employers and employees. Employers must contribute 6% of gross salaries to the social security system via the Office National d'Assurance Vieillesse (ONA), with employees contributing 4%. Additionally, employers are responsible for withholding income tax (IRPP) based on progressive rates and remitting these taxes monthly, alongside contributions for workplace accident insurance. Accurate payroll calculations, timely remittance, and record-keeping are essential to ensure compliance.

Employees benefit from deductions such as social security contributions, medical and education expenses, and family allowances, which reduce taxable income. The income tax brackets for 2025 are as follows:

Employers must file monthly returns, perform annual reconciliations, and retain payroll records for at least five years. Foreign workers and companies face additional rules, including potential benefits from tax treaties, residency considerations, and regulations on permanent establishments and transfer pricing. These measures aim to prevent double taxation and ensure compliance with Haiti’s tax laws.

Salaries in Haiti vary by industry, role, and location, with higher wages typically found in telecommunications, finance, and international sectors. For example, annual salaries range from HTG 400,000 to HTG 1,800,000 depending on the position, such as Customer Service Agents earning HTG 400,000–800,000 and Software Developers earning HTG 900,000–1,800,000. Employers should consider regional differences, especially in Port-au-Prince, and stay updated on market trends to remain competitive.

Minimum wages are sector-specific, with export industries at HTG 685/day, manufacturing and services at HTG 600/day, and domestic work at HTG 450/day. Employers must comply with these rates to avoid penalties. Compensation packages often include bonuses like the 13th month salary, transportation, housing, and performance-based incentives, typically paid monthly via bank transfer, cash, or mobile money. Salary growth is expected to be moderate in 2025, influenced by inflation, economic development, skills shortages, and policy changes.

Haiti's labor law mandates a minimum of 15 days of annual paid vacation after one year of continuous service. Employees accrue this leave over the year and are entitled to their regular salary during this period. Public holidays are observed throughout the year, including major dates like New Year's Day, Independence Day, and Christmas, with employees generally taking these days off with pay; working on holidays typically warrants additional compensation.

Sick leave regulations vary, often requiring medical certification, with pay status depending on employer policies. Maternity leave generally lasts 12 weeks with partial pay, while paternity leave is shorter, usually a few days to a week, and may be paid or unpaid. Additional leave types include bereavement, study, and sabbatical leave, depending on employer policies and agreements.

Haiti's employee benefits are governed by legal mandates and evolving expectations. Employers must provide mandatory benefits such as minimum wage (industry-specific), paid vacation after one year, public holidays, maternity leave, severance pay, and social security contributions to OFATMA. Non-compliance can lead to penalties. Key mandatory benefits include:

Beyond legal requirements, optional benefits such as health insurance, life insurance, retirement plans, transportation, housing, meals, and training are common to attract skilled workers. While OFATMA covers basic work-related health risks, comprehensive health insurance is highly valued and often offered by larger employers, with private providers available.

Retirement benefits are primarily through Haiti’s social security system, but supplemental plans are increasingly used to enhance retirement security. Larger firms tend to offer more comprehensive packages, including health, retirement, and additional perks, whereas SMEs typically provide basic mandatory benefits with fewer extras.

In Haiti, employment agreements are essential for defining the employer-employee relationship, ensuring legal compliance, and protecting rights. Contracts must be written and include key clauses such as job description, salary, working hours, probation period, confidentiality, non-compete, and termination procedures. Haitian law recognizes two main contract types: fixed-term and indefinite-term. Fixed-term contracts are for specific projects or durations and may face renewal restrictions, while indefinite contracts offer ongoing employment with more job security.

Employers should be aware of legal requirements for contract validity and renewal limits. Fixed-term contracts are typically used for temporary work, whereas indefinite contracts are standard for ongoing employment. Clear contractual clauses are crucial to avoid legal issues and ensure enforceability.

Employers must include essential clauses such as job details, salary, probation period, confidentiality, non-compete, and termination procedures to ensure compliance and clarity.

Remote work in Haiti is growing, with no specific legislation but existing labor laws applying equally to remote employees. Employers must include clear terms in employment contracts regarding responsibilities, hours, and performance, while ensuring compliance with Haiti’s Labor Code, social security, and tax obligations. Employers are also responsible for maintaining health and safety standards for remote workers.

Flexible arrangements available include full-time remote, hybrid, flextime, compressed workweeks, and job sharing, allowing adaptation to business needs. Key data points are summarized below:

Haiti's labor laws specify procedures for employment termination, emphasizing compliance to avoid legal issues. Notice periods vary by employee category and length of service, with monthly workers requiring 15 days to 2 months' notice and daily/hourly workers from 8 days to 1 month. Severance pay, mandatory when terminating without just cause, is calculated at one month's salary per year of service, with potential caps.

Terminations are classified as with or without just cause. Just cause includes misconduct or violations, while economic reasons justify without just cause, which mandates severance pay. Employers must follow procedural steps: providing written notices, maintaining documentation, and settling all entitlements, including social security notifications. Failure to adhere can lead to unlawful termination claims.

Employees are protected against wrongful dismissal, with rights to challenge, seek reinstatement, or claim damages, especially in cases of discrimination. Proper documentation and adherence to legal procedures are critical for employers to minimize wrongful dismissal risks.

Engaging independent contractors in Haiti offers businesses flexibility and access to specialized skills without long-term commitments. However, it is crucial for employers to understand the legal, contractual, and tax implications to ensure compliance. Correctly classifying workers as either employees or independent contractors is fundamental, as misclassification can result in significant penalties. The classification hinges on factors such as control over work, integration into business operations, relationship duration, financial dependence, and provision of tools. Employers should evaluate these factors comprehensively.

A well-drafted contract is essential, outlining the scope of work, deliverables, timelines, payment terms, and IP rights. Independent contractors in Haiti are responsible for their own tax obligations, including income tax and VAT if applicable. They must register with the Directorate General of Taxes and maintain proper records. Common industries utilizing independent contractors include technology, creative services, consulting, construction, education, healthcare, and non-profit sectors. Employers should ensure contractors have adequate insurance coverage as part of their agreements.

Haiti's work permit system requires foreign nationals to obtain appropriate visas and permits before employment. The primary work-related visas include the Work Visa (Visa de Travail), which mandates employer sponsorship and is tied to a specific job, and the Investor Visa for significant capital investments. Short-term business activities generally qualify for a Business Visa, which does not permit employment. Foreigners already in Haiti on a tourist visa must leave and reapply for the correct work permit to work legally.

The application process involves securing a job offer, employer sponsorship, submitting documentation (passport, qualifications, medical and police certificates), and approval from the Ministry of Labor. Processing times range from a few weeks to several months, with fees varying by permit type. Employers must ensure compliance with labor laws, sponsor accurately, and report status changes, while employees must adhere to visa conditions and renew permits timely. For those seeking permanent residency, requirements include continuous residence, financial stability, good conduct, and societal integration.