Employer of Record Guide in 
Trinidad and Tobago

Navigating the hiring landscape in Trinidad and Tobago can be complex, but with the right insights, you can streamline your process. Discover how to compliantly hire top talent and manage your workforce effectively in this vibrant Caribbean market.

Capital City

Port of Spain

Currency

Trinidad and Tobago dollar ($)

Languages

English

Population size

1,367,764
OVERVIEW

Key stats and facts

Trinidad and Tobago offers a skilled workforce with growing expertise in AI, cybersecurity, and customer service, anchored by major economic centers like Port of Spain and San Fernando. Understanding the local market dynamics and regulatory landscape is essential for successful expansion into this English-speaking nation.

Major economic hubs

Port of Spain, San Fernando, Chaguanas, Couva, Scarborough

Skills in demand

AI and machine learning specialists, Big data specialists, Cyber security specialists, Customer service representatives, Construction and skilled trade workers

Currency

Trinidad and Tobago dollar ($)

Language

English

GDP per Capita

$19,319.13 USD per capita

Standard Tax Rate

25% federal

Your EOR guide in 
Trinidad and Tobago

From payroll cycles to statutory contributions, employment in Trinidad and Tobago involves specific compliance requirements that can make or break your hiring success. This comprehensive guide breaks down everything from minimum wage standards to leave entitlements, giving you the clarity you need to hire with confidence.

Minimum Wage

Trinidad and Tobago's minimum wage is TTD $17.50 per hour, effective as of recent government announcements. This applies to most sectors, though some industries may have specific wage councils that set different rates.

Key Points:

  • Applies to all employees regardless of age or experience level
  • Some sectors (domestic workers, security guards) may have different minimum wage structures
  • Agricultural workers may be subject to different wage determinations

Payroll Cycle

Common payroll frequencies in Trinidad and Tobago include:

  • Monthly: Most common for salaried employees (12 pay periods per year)
  • Bi-weekly: Every two weeks (26 pay periods per year)
  • Weekly: Less common, typically for hourly workers (52 pay periods per year)

Employers must ensure consistent payment schedules and cannot delay wages beyond agreed terms.

Individual Income Tax

Trinidad and Tobago operates a progressive income tax system with the following brackets for 2024:

Annual Income (TTD) Tax Rate
First $84,000 0%
$84,001 - $1,000,000 25%
Over $1,000,000 30%

Additional Tax Considerations:

  • Green Fund Levy: 0.3% on chargeable income exceeding TTD $84,000
  • Health Surcharge: 2.5% on chargeable income exceeding TTD $1,000,000

Tax Residency Criteria

An individual is considered a tax resident of Trinidad and Tobago if they:

  • Are present in the country for 183 days or more in a calendar year, or
  • Have their permanent home in Trinidad and Tobago, or
  • Are a citizen of Trinidad and Tobago (subject to certain exceptions)

Tax residents are liable for income tax on worldwide income, while non-residents pay tax only on Trinidad and Tobago-sourced income.

Employer Payroll Contributions

Employers in Trinidad and Tobago must contribute to several statutory schemes:

Contribution Type Employer Rate Employee Rate Salary Cap (TTD)
National Insurance Scheme (NIS) 3.6% 2.4% $15,600/month
Health Surcharge 3% 1.5% No cap
Human Development Fund 1% - No cap
Total Employer Cost ~7.6% 3.9% Varies

Additional Considerations:

  • Employers may also need to contribute to industry-specific training funds
  • Workers' compensation insurance is typically required
  • Some sectors have additional levy requirements

Working Hours

The standard working week in Trinidad and Tobago is:

  • 40 hours per week (8 hours per day, 5 days per week)
  • Maximum 12 hours per day including overtime
  • Rest periods: Minimum 30 minutes for meals during shifts over 5 hours

Special Categories:

  • Security guards and certain essential services may have different hour arrangements
  • Shift workers in continuous operations may work alternative schedules
  • Senior management and professionals may be exempt from standard hour limits

Overtime Pay

Overtime regulations in Trinidad and Tobago:

  • Overtime threshold: Hours worked beyond 40 per week or 8 per day
  • Overtime rate: 1.5× regular hourly rate for the first 4 hours of overtime
  • Double time: 2× regular rate for overtime beyond 4 hours in a day
  • Sunday/holiday work: Generally paid at double time rates

Bonus Payments

While not legally mandated, bonus payments are common and may include:

  • Annual bonus: Often equivalent to one month's salary (13th month)
  • Performance bonuses: Based on individual or company performance
  • Profit-sharing: Some companies offer profit-sharing arrangements

Once established as a practice, bonuses may become an implied term of employment.

Full-Time vs. Part-Time

  • Full-time: Typically 35-40 hours per week with full benefits entitlement
  • Part-time: Less than 35 hours per week, with pro-rated benefits
  • Casual workers: Irregular hours, limited benefits, but still entitled to minimum wage and basic protections

Vacation Leave

Annual Leave Entitlement:

  • Minimum: 14 working days per year after 12 months of continuous service
  • Accrual: Typically earned monthly (1.17 days per month)
  • Carry-over: Usually limited to a portion of unused leave
  • Cash-out: Must be paid out upon termination

Sick Leave

Sick Leave Provisions:

  • Entitlement: 14 days per year (may be cumulative up to 126 days)
  • Medical certificate: Required for absences over 3 consecutive days
  • Payment: Full pay for legitimate sick leave
  • Chronic conditions: Extended sick leave may be available with medical documentation

Maternity Leave

Maternity Benefits:

  • Duration: 14 weeks (98 days)
  • Payment: 60% of average earnings, paid by National Insurance Scheme
  • Job protection: Position must be held open during leave
  • Medical benefits: Continued health coverage during leave

Paternity Leave

Paternal Leave Provisions:

  • Duration: Limited paternity leave provisions (typically 3-5 days)
  • Payment: Often unpaid unless provided by employer policy
  • Adoption: Similar provisions may apply for adoptive fathers

Bereavement Leave

Compassionate Leave:

  • Duration: Typically 3-5 days for immediate family members
  • Payment: Usually paid leave
  • Extended family: May be unpaid or at employer's discretion
  • Documentation: Death certificate may be required

Personal & Family Leave

Other Leave Types:

  • Study leave: For approved educational pursuits
  • Jury duty: Paid leave for civic duties
  • Emergency leave: Short-term leave for family emergencies
  • Union activities: Time off for legitimate union business

Summary

Leave Type Duration Paid? Funding Source
Annual Leave 14 days minimum Yes Employer
Sick Leave 14 days/year Yes Employer
Maternity Leave 14 weeks 60% of earnings National Insurance
Paternity Leave 3-5 days Varies Employer
Bereavement 3-5 days Yes Employer
Study Leave Varies Partial/Unpaid Employer

Termination Types

Termination With Cause:

  • Serious misconduct, theft, fraud, or gross negligence
  • Repeated violations of company policy
  • No notice or severance required
  • Burden of proof lies with employer

Termination Without Cause:

  • Redundancy, restructuring, or performance issues
  • Requires proper notice or payment in lieu
  • Must follow fair procedures

Notice Period Requirements

Notice periods vary based on length of service:

Length of Service Notice Period
Less than 4 weeks 1 day
4 weeks - 2 years 2 weeks
2 - 5 years 4 weeks
5 - 10 years 6 weeks
Over 10 years 8 weeks

Payment in Lieu:

  • Employers may pay salary instead of providing working notice
  • Payment must include all benefits and allowances
  • Calculation based on average earnings over previous 13 weeks

Severance Pay

Severance Entitlements:

  • Eligibility: Employees with 2+ years of continuous service
  • Rate: 2 weeks' pay per year of service
  • Maximum: Typically capped at 24 weeks' pay
  • Calculation: Based on average weekly earnings

Probationary Periods

Probation Rules:

  • Duration: Typically 3-6 months for new employees
  • Notice: Shorter notice periods during probation (usually 1 week)
  • Extensions: Must be agreed upon in writing
  • Rights: Basic employment rights still apply during probation

Final Pay Requirements

Final Payment Timeline:

  • Notice period: All outstanding wages must be paid during notice
  • Final day: All accrued benefits, vacation pay, and severance
  • Timeline: Within 7 days of termination or next regular pay period
  • Deductions: Only lawful deductions permitted

Anti-Discrimination & Retaliation Laws

Protected Grounds:

  • Race, religion, sex, age, disability
  • Pregnancy and maternity status
  • Trade union membership or activities
  • Filing complaints or grievances

Prohibited Actions:

  • Dismissal based on discriminatory grounds
  • Retaliation for exercising employment rights
  • Constructive dismissal through hostile work environment

National Public Holidays

Trinidad and Tobago observes the following public holidays:

Holiday Date Type
New Year's Day January 1 Fixed
Carnival Monday Variable (February/March) Variable
Carnival Tuesday Variable (February/March) Variable
Spiritual/Shouter Baptist Liberation Day March 30 Fixed
Good Friday Variable (March/April) Variable
Easter Monday Variable (March/April) Variable
Indian Arrival Day May 30 Fixed
Corpus Christi Variable (May/June) Variable
Labour Day June 19 Fixed
Emancipation Day August 1 Fixed
Independence Day August 31 Fixed
Republic Day September 24 Fixed
Divali Variable (October/November) Variable
Eid-ul-Fitr Variable Variable
Christmas Day December 25 Fixed
Boxing Day December 26 Fixed

Holiday Pay Eligibility

Qualification Requirements:

  • Must have worked for at least 3 months before the holiday
  • Must work the scheduled day before and after the holiday (unless excused)
  • Part-time employees qualify on a pro-rated basis

Payment Rates:

  • Regular holiday pay: Full day's wages for eligible employees
  • Working on holidays: Double time plus a substitute day off
  • Substitute holidays: When holiday falls on weekend, Monday becomes the observed holiday

Religious Observances

Trinidad and Tobago's diverse population means multiple religious holidays are recognised:

  • Christian holidays: Good Friday, Easter Monday, Christmas, Boxing Day
  • Hindu holidays: Divali
  • Muslim holidays: Eid-ul-Fitr
  • Other observances: Spiritual Baptist Liberation Day reflects the country's cultural diversity

Required Documents for Employment

Essential Documentation:

  • Employment contract: Detailed terms and conditions
  • National identification: Valid ID card or passport
  • Tax Registration Number (TRN): For income tax purposes
  • National Insurance Number: For social security contributions
  • Bank account details: For salary payments
  • Educational certificates: Relevant qualifications
  • Work permits: For non-nationals (if applicable)

Language Requirements

Official Language:

  • English is the official language of business and government
  • All employment contracts and official documents are in English
  • No additional language requirements for most positions
  • Spanish may be beneficial for certain roles due to regional proximity

Background Checks & References

Permissible Checks:

  • Criminal background: Police certificate of character
  • Employment verification: Previous employer references
  • Educational verification: Degree and certificate authentication
  • Professional licensing: For regulated professions
  • Credit checks: Only for financial or fiduciary roles

Legal Requirements:

  • Written consent required for all background checks
  • Checks must be relevant to the position
  • Results must be kept confidential

Data Protection & Privacy

Privacy Considerations:

  • Data Protection Act: Governs collection and use of personal information
  • Employee consent: Required for data collection and processing
  • Retention limits: Personal data should not be kept longer than necessary
  • Access rights: Employees can request access to their personal data
  • Cross-border transfers: Special considerations for data sent overseas

IP Assignment & Confidentiality

Intellectual Property:

  • Work-for-hire: Generally, work created during employment belongs to employer
  • Inventions: May require specific assignment clauses
  • Confidentiality agreements: Common for sensitive roles
  • Non-compete clauses: Limited enforceability, must be reasonable in scope and duration

Probation Period Setup

Probationary Arrangements:

  • Standard duration: 3-6 months for most positions
  • Performance reviews: Regular assessments during probation
  • Extension options: Must be mutually agreed and documented
  • Termination rights: Shorter notice periods apply
  • Benefits: Usually full benefits apply even during probation

Onboarding Timeline

Step Timeline
Offer acceptance Day 0
Document collection Days 1-3
Contract execution Days 3-5
Tax and NIS registration Days 5-7
Bank account setup Days 5-10
Orientation and training Week 2
Probation review schedule Month 1

What the EOR Handles

Borderless AI manages:

  • Employment contract preparation and execution
  • Tax registration and compliance
  • National Insurance registration
  • Payroll setup and processing
  • Local regulatory compliance
  • Document collection and verification
  • Ongoing HR administration

Worker Classification: Employee vs. Contractor

Employee Classification:

  • Works under direct supervision and control
  • Uses employer's equipment and facilities
  • Integrated into business operations
  • Entitled to benefits, leave, and job security
  • Subject to income tax withholding

Independent Contractor:

  • Operates with autonomy and independence
  • Uses own tools and equipment
  • Provides services to multiple clients
  • Responsible for own taxes and benefits
  • Issues invoices for services rendered

Misclassification Risks:

  • Back payment of benefits and contributions
  • Penalties from tax and labour authorities
  • Legal liability for employment rights violations

Unionisation & Collective Agreements

Trade Union Environment:

  • Strong tradition of trade unionism in Trinidad and Tobago
  • Major unions in oil, gas, manufacturing, and public sectors
  • Recognition procedures: Unions must be certified to represent workers
  • Collective bargaining: Wages and conditions negotiated industry-wide
  • Industrial relations: Formal dispute resolution mechanisms exist

Key Considerations:

  • Some industries have mandatory union membership
  • Collective agreements may override individual employment terms
  • Strike action is regulated but legally protected
  • Employers must recognise certified unions

Cultural Norms & DEI Expectations

Workplace Culture:

  • Diversity: Multi-ethnic, multi-religious society with strong diversity expectations
  • Communication style: Generally friendly and relationship-focused
  • Hierarchy: Moderate respect for authority, but open communication encouraged
  • Work-life balance: Family and community commitments highly valued
  • Carnival season: Expect reduced productivity during Carnival period

DEI Best Practices:

  • Inclusive hiring practices across ethnic and religious lines
  • Accommodation for religious observances
  • Gender equality in pay and opportunities
  • Disability accommodation as required by law

Remote Work Considerations

Legal Framework:

  • No specific remote work legislation, but employment laws still apply
  • Health and safety: Employer duty of care extends to home offices
  • Equipment provision: Employer typically responsible for work tools
  • Working time: Standard hour limits and overtime rules apply
  • Data security: Enhanced importance for confidential information

Practical Considerations:

  • Internet infrastructure generally good in urban areas
  • Time zone alignment with North American markets
  • Cultural adaptation to remote work accelerated post-COVID
  • Tax implications for cross-border remote work arrangements

Cross-Border Remote Work:

  • Tax residency implications for employees working from other countries
  • Social security coordination agreements may apply
  • Work permit requirements for non-nationals working remotely
  • Currency and payment method considerations

Built-in benefits packages for
Trinidad and Tobago

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:

Medical Insurance

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Dental Insurance

United Healthcare
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Retirement Contribution

United Healthcare
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Life Insurance

United Healthcare
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Vision Insurance

United Healthcare
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