Hire employees in Antigua and Barbuda
What a foreign company needs to know before employing people in Antigua and Barbuda: whether you need an entity, what an employee costs when there is no income tax but three payroll levies, which leave the Labour Code makes mandatory, and what the Industrial Court expects before a dismissal.
Quick answers
The questions leadership teams ask first. Detail follows.
Do I need a local entity to hire?
No. There are three routes:
- Employer of Record. Dryft Global employs the person through a compliant local employer registered with the Antigua and Barbuda Social Security Board (ABSSB), the Medical Benefits Scheme (MBS) and the Board of Education, and runs payroll, the levies and the Labour Code paperwork. You direct the work.
- Direct local entity. You incorporate, register with the ABSSB, MBS and Board of Education, open banking and run payroll yourself. The guide puts this at 8 to 14 weeks.
- Independent contractor. A contract for services works only for genuinely independent specialists. If the daily reality looks like employment, the Department of Labour or the Industrial Court will treat it that way. See below.
When should I use an EOR instead of incorporating?
An EOR makes commercial sense when you are:
- Onboarding professionals in 3 to 5 days rather than waiting on incorporation and bank KYC.
- Building a team of 1 to 15 knowledge workers: analysts, accountants, engineers, support specialists.
- Keeping your parent company out of direct exposure before the Industrial Court.
Your own entity becomes the right answer above roughly 15 permanent staff, or when you need commercial premises or a regulated licence. An EOR does not by itself remove permanent establishment risk if your person routinely concludes commercial contracts for you.
What does an employee actually cost beyond salary?
Plan for roughly 26% to 34% on top of gross base salary. Statutory employer levies total about 14.50%, but social security is capped, so the effective rate on professional salaries is lower. Leave, holiday and sick pay accrual make up most of the rest, plus private medical top-up cover. There is no income tax to withhold. Full breakdown below.
How difficult is termination in Antigua and Barbuda?
Manageable if you document it. There is no at-will employment. Under Division C of the Labour Code you need just cause: proven misconduct or serious breach of duty, documented incompetence, or genuine redundancy. For performance or minor misconduct a formal written warning and a real opportunity to correct come first. Summary dismissal without notice is reserved for serious offences backed by a documented investigation, and the Industrial Court can order reinstatement or substantial compensation.
Can Dryft Global legally employ my team in Antigua and Barbuda?
Yes. Dryft Global acts as the legal employer. We issue the written statement of employment conditions inside the statutory 10 days, run monthly XCD payroll with itemised pay statements, remit ABSSB, MBS and Board of Education contributions by the 14th, administer leave, and run terminations through the Labour Code's warning procedure, while you direct the work.
Hiring routes compared
Speed, cost, Industrial Court exposure and permanent establishment risk differ by route.
| Factor | Direct local entity | Dryft Global EOR | Independent contractor |
|---|---|---|---|
| Speed to onboard | 8 to 14 weeks | 3 to 5 days | Days |
| Corporate presence | Yes, plus ABSSB and MBS setup | No, employed through Dryft's local employer | No, contract for services |
| Upfront capital | High: incorporation, registration, banking | Zero capital outlay | None |
| Labour Code liability | Direct exposure before the Industrial Court | Carried by Dryft's framework | High if reclassified |
| Permanent establishment risk | Immediate taxable presence | Mitigated by service structuring | High if the contractor binds you |
| Best fit | More than 15 staff, premises | 1 to 15 remote knowledge workers | Discrete project work |
What an employee costs in Antigua and Barbuda
With no personal income tax, employer obligations reduce to three payroll levies plus leave accrual. Social security stops at a monthly ceiling; the Medical Benefits Scheme does not. The guide models a specialist on EC$ 120,000 a year.
| Component | Employer share | Notes |
|---|---|---|
| Social Security (ABSSB) | 8.50% | Capped at EC$ 4,500 a month of earnings |
| Medical Benefits Scheme (MBS) | 3.50% | Uncapped, on total gross earnings |
| Board of Education Levy | 2.50% | Subject to statutory thresholds |
| Statutory levies, headline rate | ~14.50% | Social security falls to ~3.83% on the model salary |
| Annual leave accrual | 6.92% | 18 working days after year one |
| Public holiday accrual | 4.23% | 11 recognised holidays |
| Employer-paid sick leave | 4.62% | 12 working days before the ABSSB benefit |
| Mandatory statutory subtotal | ~25.6% | Above gross, on the guide's model salary |
| Private medical top-up | ~5.50% | Market standard alongside the MBS |
| Connectivity stipend | ~3.00% | EC$ 200 to 400 a month |
| Total employer on-cost | ~34.1% | Above base salary |
For an employee on EC$ 120,000 gross a year, the guide's model puts fully burdened cost at about EC$ 160,913, roughly 134% of base. Because social security is capped, that percentage falls as salaries rise. Ask us for a cost model with current rates applied.
Payroll and tax
Wages may be paid weekly, fortnightly, semi-monthly or monthly; professional staff are customarily monthly, in East Caribbean dollars by electronic deposit. Division B of the Labour Code requires an itemised pay statement on or before each pay date showing gross earnings, the period covered, each deduction, and net pay. Keep payroll ledgers, hour logs, leave records and levy receipts for at least 5 years.
No income tax withholding
Personal income tax on resident employment income was abolished in 2016, so the rate is 0% and employers withhold nothing on regular pay. Statutory deductions are limited to the employee's own share: Social Security 5.00%, Medical Benefits Scheme 3.50% and Board of Education Levy 2.00%, about 10.50% in total. All three go to their boards by the 14th of the following month; late remittance carries interest of around 10% a year plus penalties and is an offence. Annual social security reconciliation is due January 31. Corporate income tax is 25% and sales tax 15% to 17%.
Statutory minimum wage
A single national hourly minimum wage covers every worker, full-time, part-time or casual, regardless of nationality or contract type. The guide gives EC$ 9.00 an hour. Confirm the in-force rate with the Department of Labour before setting a pay band. The Labour Code prohibits wage disparity based on sex, race, religion or political affiliation for work of equal value. There is no statutory 13th month: annual incentives are contractual.
Leave and mandatory benefits
- Paid vacation. Under Division B, at least 1 working day per month of service, so 12 working days in the first year. After the first year, statutory and market practice moves to 1.5 to 2 days a month, 18 to 24 days a year. Vacation pay equals regular pay and must be paid before the leave starts; it cannot be forfeited or cashed out except on termination.
- Public holidays. 11 to 12 a year, including Carnival Monday and Tuesday, Independence Day on November 1 and Sir Vere Cornwall Bird Sr. Day. One falling on a Sunday is observed the following Monday. Work on a holiday or rest day is paid at double time.
- Sick leave. After 12 months of service, at least 12 working days fully paid a year. A medical certificate is required beyond 2 consecutive days. For prolonged illness the Social Security sickness benefit pays 60% of average insurable earnings for up to 26 weeks.
- Maternity. Under Division E, 13 weeks after 12 months of service, at least 6 weeks before and 7 weeks after the birth. The employer pays not less than 40% of basic wage and the Social Security maternity allowance covers 60% of average insurable earnings, keeping the employee whole. There is no statutory paternity leave: employers contract for 3 to 5 days.
- Working time. 40 hours a week, 8 a day, an unpaid meal break of at least 30 minutes after 5 continuous hours, and at least 24 consecutive hours of weekly rest. Overtime beyond 8 hours in 24 or 40 in the week is paid at 1.5 times basic. Managerial staff can be exempted only if the contract says so expressly.
- Supplementary benefits. Not statutory but expected in professional sectors: private major medical cover alongside the universal MBS, a pension match of 3% to 5%, and discretionary bonuses of 1 to 2 months' salary.
Termination and notice periods
The Labour Code is one of the most comprehensive single-statute labour codes in the Commonwealth Caribbean, and its standards are strict minimums. Probation runs up to 3 months, extendable by mutual written agreement to a maximum of 6 months. After that, termination needs just cause under Division C: proven misconduct or serious breach of duty, documented incompetence, or genuine redundancy. For anything short of gross misconduct, a formal written warning naming the deficiency and allowing a reasonable chance to correct it comes first. Skip it and you have created an unfair dismissal claim whatever the merits.
| Stage or pay interval | Statutory notice |
|---|---|
| During probation | 1 day to 1 week |
| After probation, paid weekly | 1 week, or pay in lieu |
| After probation, paid fortnightly | 2 weeks, or pay in lieu |
| After probation, paid monthly | 1 month, or pay in lieu |
- Redundancy severance is one month per year. After 12 months of continuous service, redundancy pays 1 month's basic pay, or the fractional equivalent, per completed year, on the final basic wage rate.
- Get the written statement out in 10 days. Division B requires a written statement of conditions within 10 days of the start date, covering hours, leave, probation and notice.
- Fixed terms can convert. Successive fixed-term renewals without objective operational justification may be reclassified by the Industrial Court as permanent.
- Remedies are real. The Industrial Court is a specialist superior court of record and can order reinstatement, re-engagement or substantial damages.
Can I use independent contractors?
Only for genuinely independent specialists doing discrete work. The Industrial Court and the Department of Labour apply a multi-factor test: does the employer dictate working hours, location and methods; does the individual work exclusively for one company and depend on that income; who supplies the devices, software licences and business email; and is the work central to core operations. Full-time exclusive staff on contractor paperwork fail that test. On reclassification you owe retroactive ABSSB, MBS and Board of Education contributions with penalties, unpaid vacation, holiday pay and overtime, notice and severance on exit, plus fines and legal costs. For anyone who works like an employee, an EOR is the compliant route.
The legal framework in brief
Employment is consolidated into a single statute, supplemented by the social insurance and data protection Acts. Terms falling below the Code's standards are void. The instruments you will hear referenced most:
- Antigua and Barbuda Labour Code (Cap. 27). Division B covers basic conditions, hours and wage protection; Division C unfair dismissal, redundancy and severance; Division D health and safety; Division E maternity; Divisions F to K trade unions, collective bargaining and Industrial Court disputes.
- Social Security Act (Cap. 408). Retirement, invalidity, sickness and maternity benefits, and the ABSSB contribution regime.
- Medical Benefits Act (Cap. 271). The universal healthcare contribution fund.
- Board of Education Act. The compulsory education levy on employers and employees.
- Data Protection Act, 2013. Lawful basis and consent for employee data, data minimisation, and safeguards for cross-border transfers.
- Work Permit Act. Foreign nationals need a work permit from the Ministry of Labour, typically 1 year and renewable, subject to a labour market test showing no qualified citizen or permanent resident was available. CARICOM nationals with a CSME skills certificate are exempt. The Nomad Digital Residence visa allows remote work for foreign employers for up to 2 years without local tax or contributions, if the holder does not serve local entities.
- Authorities. Department of Labour and Labour Commissioner, the Industrial Court, the ABSSB, the MBS and the Board of Education.
Where the talent is
The workforce is highly literate, service-oriented and English-speaking, built on tourism, yachting and international financial services and now diversifying into digital commerce, compliance, software administration and customer support. Atlantic Standard Time (UTC-4) with no daylight saving gives a full overlap with US Eastern. The market suits specialised, quality-focused teams in compliance verification, financial review, gaming administration, technical support and executive virtual assistance rather than high-volume voice work.
| Region | Talent and industry concentration |
|---|---|
| St. John's | Offshore banking, fiduciaries, gaming administration, maritime registry; compliance analysts, ACCA and CPA accountants, corporate administrators |
| UWI Five Islands and Antigua State College | Computing, artificial intelligence and business analytics; software and DevOps talent |
| Jolly Harbour and English Harbour | Business centres and shared offices with fibre and backup power |
Antigua and Barbuda Implementation Kit
This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step. Built from Dryft's own onboarding checklist.
- Step-by-step checklist, from route selection to first payroll
- Written statement of employment conditions for the 10-day deadline
- ABSSB, MBS and Board of Education registration and remittance calendar
- Itemised pay statement template that satisfies Division B
- Division C written warning and dismissal procedure templates
- Redundancy severance calculator, one month per completed year
- Data Protection Act, 2013 consent and transfer pack
This guide is general information, not legal, tax or immigration advice. Contribution rates, wage ceilings and Labour Code interpretation change through legislative amendment, board indexation and Industrial Court rulings. Confirm current figures with a qualified adviser or with Dryft before acting. Last reviewed September 2026.
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