Employer Of Record in Saint Kitts

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Accelerate your growth into Saint Kitts Compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in Saint Kitts

As your EOR in Saint Kitts we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in Saint Kitts provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to Saint Kitts with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in Saint Kitts being sure that your staff will be hired in compliance with labor and tax regulations

Table of Contents

Quick Facts

Currency:
East Caribbean Dollar (XCD)

Capital:
Basseterre

Payroll Cycle:
Weekly / Monthly

Language:
English

Saint Kitts Country Facts

Saint Kitts or Saint Christopher Island, usually abbreviated to St Kitt, has a twin island, Nevis, so it’s common to hear “St Kitts and Nevis” together. The two form a federation and so come as a pair when talking business and even area culture. The Fiscal Incentives Act was put in place to increase investment in the country so companies expanding into or outsourcing to St Kitts receive a warm corporate welcome. This welcome includes a tax holiday of up to 15 years, additional tax rebates of up to five years, exemption from customs duties on material and equipment deemed necessary to establish or update an enterprise, repatriation of profits, dividends, royalties, and imported capital (by arrangement with the Ministry of Finance), plus protection of investment through government agreement, and no personal income tax.

The Economy

St Kitts and Nevis’ economy is bouncing back nicely after the pandemic-related troubles felt around the world. In fact, it’s among the most efficient economies in the world. St. Kitts and Nevis ranks 109th of 190 countries in starting a business, according to the World Bank’s 2020 Doing Business Report. The citizenship by investment (CBI) program fuels revenue in tourism and has a booming construction sector, plus the government remains committed to creating an enhanced business climate to attract more foreign investment. Among the priority sectors for investment in Kitts are financial services, information technology, education services and limited light manufacturing.

The Importance of Small and Medium-sized Companies

The government provides a number of investment incentives for businesses who are considering establishing operations in St. Kitts encouraging foreign private investment. Foreign investors can repatriate all profits, dividends, and import capital. Small Business Development Center St. Kitts (SBDC St. Kitts) has a successful growth focus based on the recognition that SMEs are the major drivers of a healthy economy. Information, communication and tech are priority areas according to the Small Business Development Act.

Population Characteristics

The Federation of St Kitts and Nevis has a population around 53,000 people. The primary language spoken is English with a literacy rate of about 98%– meaning a large and educated workforce. About 5% of Kittians’ lineage goes back to British settlers and migrants, 95% of which are of Afro-Caribbean descent. The population is largely made up of peoples whose ancestors were forced to the island to work on sugar plantations. The St Kitts government encourages fair treatment and support of women in the private sector through non- discriminatory processes for business registration, fiscal incentives, investment opportunities, and quality assessments.

Economic Opportunities

St. Kitts has identified priority sectors for investment including financial services, information technology, and
education services.

There is no restriction for domestic investors seeking to do business in St. Kitts and they are actively encouraged to take advantage of export opportunities. Especially when specifically related to the country’s membership in the OECS Economic Union and the Caribbean Community Single Market and Economy (CSME), which enhance the competitiveness of the local and regional private sectors across traditional and emerging high- potential markets.

Key Sectors of the National Economy

The major sectors that make up St Kitts’ annual GDP:

Service Industry:
St Kitts boasts top-notch innovation strategies and vital infrastructure for business and trade. Recent newly established trade rules formulated by the government and businesses have enabled dramatic advances in technology. The service sector is one of the largest growing sectors in St Kitts.

Tourism:
The Caribbean is the most tourism intensive region in the world. St Kitts, boosted by government investment into improving physical and social infrastructure, is currently the largest foreign exchange earner compared to other industries.

Agriculture:
The major St Kitts crop is sugarcane and it’s been that way for hundreds of years. Farmers also grow sweet potatoes, onions, tomatoes, cabbages, carrots and peanuts.

Human Talent
The Ministry of Education of St. Kitts and Nevis has recently identified the radical improvement of Technical and Vocational Education and Training (TVET) as a major plank of its development strategy Computer labs, libraries and reading clinics are common in St Kitts’ schools. Recently, an initiative was undertaken to provide laptop computers to every secondary school student.

Prominent Cities for Business

St Kitts and Nevis remain a popular choice for discerning offshore investors.

  • Saint George Basseterre Parish
    It is the largest parish in Saint Kitts and Saint George Basseterre is the economic heart of Saint Kitts. Basseterre is a regional financial center, home to the Eastern Caribbean Central Bank Headquarters, as well as the Eastern Caribbean Stock Exchange.
  • Saint Paul Charlestown:
    Saint Paul Charlestown is home to banks, computer manufacturing, real estate, freight and logistics services. In colonial times, the town of Charlestown was protected by Fort Charles to the south and Fort Black Rocks to the north.
  • Saint George Gingerland:
    Saint Paul Capisterre is the sugar cane capital of the entire nation. Its rich volcanic soils, gentle terrain and high rainfall all owing to its successes. Although demand for sugar cane hit a big dip around 2005 other sectors such as tourism and the arts still grow. There is a restaurant located at the inn as well as an atelier owned by British artist, carver, sculptor and weaver Kate Spencer. Her works include still life, watercolor prints St. Kitts style, and silk pareos.

Technological Ecosystem

The government of St. Kitts and Nevis continue to make enormous strides infusing technology into the everyday lives of citizens to ensure the twin-island Federation remains competitive in a globalized world.

In the ICT Development Index compiled by the International Telecommunications Union (ITU) headquartered in Switzerland St. Kitts and Nevis ranks #1 in ICT Development regionally and #176 evaluated worldwide.

Facilities for Foreign Investment

There are no limits on foreign control in St. Kitts. Foreign investors may hold up to 100 percent of an investment. Local and foreign investor cooperation is welcome in joint ventures specific to technology and capital. Foreign investors receive the same treatment as citizens. The only exception to this is the requirement that foreign investors obtain an Alien Landholders License to purchase residential or commercial property.

The government provides a number of investment incentives for businesses considering establishing operations in St. Kitts. Foreign investors can repatriate all profits, dividends, and import capital.

Business Culture in Saint Kitts

Greetings
It’s customary to greet people when entering a business or store. Skipping this bit of etiquette usually results in slow, or no, service.

Don’t Rush
Rushing into making your request is considered rude. A little small talk will improve your chances of getting what you ask.

Always Ask
Do not ever take a photograph of someone without getting their permission, first.

Saint Kitts Gastronomy: regional and traditional cuisines

Conch Fritters and Pelau are popular Kittian dishes. Conch is an ocean mollusk that’s cut into bite-size pieces and deep fried. Usually eaten as a snack or appetizer. Pelau is any combination of meat and seafood along with various vegetables and rice.

Goat Water isn’t a drink, it’s a stew. Depending on the local flavor the goat stew may be flavored with onions, yams, chilies, papaya or tomatoes.

Sugar Cake is sugar, coconut and ginger dyed a variety of colors, often pink and brown, for a festive flair.

General Highlights

Year

2022

Country

Federation of St Kitts and Nevis

Capital

Basseterre

 

Num. States / Province

Saint Kitts and Nevis is divided into 14 parishes: 9 divisions on Saint Kitts and 5 on Nevis

 

 

Principal Cities

1.  Basseterre, Saint George

2.  Fig Tree, Saint John Figtree

3.  Market shop, Saint George Gingerland

4.  Saint Paul’s , Saint Paul Capesterre

Language

English

Local Currency

Eastern Caribbean Dollar

Major Religion

Christianity

Date Format

DD/MM/YYYY

Thousands Separator Format

999,999,999.99

Country Dial Code

+1

Time Zone

GMT-4

Population

53,544

 

Border Countries

Antigua and Barbuda, Netherlands (Sint Maarten), Venezuela, Montserrat (United Kingdom), and Saint Barthélemy (France)

Continental surface

269,4 km²

Fiscal Year

January 1 to December 31

VAT %

The general rate of VAT is 18% (16% of VAT itself plus 2% of municipal promotion tax)

Minimum Wage

$9.00 per hour

Taxpayer Identification Number Name in the country

TIN

Current President

Timothy Sylvester Harris Minister of Saint Kitts and Nevis

What you need to know about employing personal in Saint Kitts

Laws and Agencies that regulate labor relationships

A business must register with the Financial Services Regulatory Commission, the Registrar of Companies, the Ministry of Finance, the Inland Revenue Department, and the Social Security Board

Laws

Brief Description

Federation of Saint Kitts and Nevis Constitutional Order of 1983

It provides for the establishment of a unicameral legislature known as the National Assembly.

 

 

Organization membership

•          BRD International Bank for Reconstruction and Development

•          Latin America Group UN Voting Blocs & Caucuses

•          CDB: Caribbean Development Bank

•          IDA: International Development Association WBG: World Bank Group

Labor Code

OIT (International Labor Organization)

 

 

Social Security

The Social Security Fund covers health insurance, disability, unemploy- ment and disability contributions for your employees. It provides addi- tional benefits, relocation assistance, performance awards, and travel sti- pends to your employees to ensure they receive competitive advantages for their hard work.

Key Tax and Labor Authorities

St. Kitts-Nevis Inland Revenue Department

Is the primary revenue collection agency.

 

Nevis Island Administration

This is an administration with a Cabinet of Ministers including a Premier, a Deputy Premier, and other elected members plus two nominated members.

Labor Contracts

Protection of Employment (Written Terms and Conditions of Employment) Regulations, 1986

Requires an employer to provide to each employee within fourteen days of employment written terms and conditions of employment.

Contracts must include

•          Name and address of the employer.

•          The name and address of the business or establishment.

•          The commencing date.

•          The position.

•          Description of the duties of the position.

•          The rate of pay and the intervals at which payment will be made.

•          The hours of work.

•          The rate of overtime and premium pay (if any).

•          The duration of the probationary period.

St Kitts and Nevis Protection of Employment Act, 1986 (Cap. 18:27)

This act covers Employment security and termination of employment.

Work Hours

8 hours per day and 40 hours each week. They are entitled to a weekly rest period of 24 hours each week.

Payroll

St Kitts does not have a bilateral investment treaty with the United States. For social security benefits, only, it does have a Double Taxation Agreement with the United States in place.

Minimum Wage

$9/hour

Wages

The median salary is 3,250 XCD per month (approximately $1,195 USD), which means that half (50%) of the population are earning less than 3,250 XCD while the other half are earning more than 3,250 XCD

Overtime

More than 40 hours per week is considered overtime and should be compensated at time and half. Sundays, rest days, and public holidays should have twice the compensation rate.

Vacations or PTO

Employees are entitled to 14 days of annual paid leave in addition to Sundays and Holiday leave

Leaves of Absence

Employees have the right to paid absences for the following things:

•          Vacation leave: 14 days of annual paid leave.

•          Sick Leave: The country’s social security system will cover payments for sick leave for up to 26 weeks. If they are insured and submit a claim within 10 days of a doctor’s examination, they will receive 65% of their regular wages through the Social Security Fund.

•          Maternity Leave: Female employees receive up to 13 weeks of maternity leave with pay, and they are entitled to obtain leave for up to six weeks before giving birth. The social security system will cover 65% of the employee’s average weekly wages is she claims maternity benefits.

 
Annual Taxable Income
St. Kitts and Nevis has no form of Personal Income Tax (PIT), No tax on Residence, Filing Status, Taxable Income, Deductions and Allowances, Rates or Capital Gains. According to the Inland Revenue Department, there is no tax levied on Capital Duty or Payroll Tax. Property tax is on a market value of 0.2% to 0.3% depending on the use and location.
Employees don’t pay a personal income tax. Instead, employers are required to pay a social security tax of 5% of each employee’s income. They are also responsible for paying corporate income tax. Furthermore, employers are required to contribute 1% of employee earnings to a Severance Payment Contribution and an additional 1% tax to cover employment injury

 

Corporate Tax Rates
Saint Kitts and Nevis has no Alternative minimum tax Corporate Income Tax. Instead it is a flat rate of 33%. Corporations should ensure that they file separate tax returns and file them by the 15th day of the fourth month after the company’s year-end and attach financial statements. If the company fails to comply, there will be a 5% penalty for late filing.
 
Disability
Employers are required to contribute 1% of employee earnings to a Severance Payment Contribution and an additional 1% tax to cover employment injury.

 

Public Holidays
The Labor Code provides for public holidays that are observed in St Kitts and Nevis:
 

Type of Termination

Brief Description

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Justified Dismissal

Section 7 provides for termination of employment if notice is given.

 

a.       three months and less than a year’s continuous service, one week notice

b.       one year and less than three years, two week’s notice;

c.       three years and less than five years, three week’s notice;

d.       Five and less than seven years, four weeks

e.       Seven and less than ten years, five weeks

f.        Ten and less than fifteen years and more, six weeks

g.       Fifteen and more, ten weeks Review and Analysis of Compliance of the National Labour Legislation of Saint Kitts and Nevis with CARICOM Model Labour Laws 10

h.       monthly paid with three months and less than five years continuous

service, one month; and

i.         monthly paid with five and less than ten years, two months;

j.         ten and more years, three months.

k.       wages and benefits may be paid in lieu of notice.

l.         where employer contemplates terminating employment of ten or more employees or ten per cent or more employees on grounds of section 5

m.     he shall notify the Commissioner not less than one month before the proposed terminations, the number and categories affected, the period over which the terminations are intended to be carried out, and summarising the results of the consultations with any trade unions representing employees.

 

An employee is required to give similar notice to an employer of his/her intention except that where the contract is not in writing; notice shall not exceed four weeks. These provisions vary slightly from the CARICOM Model Labour Law, which provides for two months notice in the case of an employee with more than five years service.

 

 

 

 

Voluntary Resignation

Constructive dismissal: An employee may by virtue of section 7 (3) terminate his/her employment without notice if conduct of the employer of such nature that employee cannot reasonably be expected to continue employment and such termination shall be deemed to be termination by the employer.

In this regard, the burden of proof is on the employer.

This is different from the CARICOM Model Labour Law, which as an exception provides that the burden of proof in a matter of constructive dismissal lies with the employee.

Other forms of compensation upon termination include:
 
Severance, which can be awarded if the employer is employed for more than a year, or the previous employer gave severance upon termination. Severance can also be requested if the employee does not work for more than 12 weeks.
 

Length of Employment

Required Notice

First 5 years

Two weeks per year

5-10 years

Three weeks pay per year

More than 10 years

Four weeks pay per year

A period of 6 months or more is considered a full year, and the maximum payment cannot exceed 52 weeks of pay.

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