With many companies adopting a remote-first working environment, more and more employers are hiring international employees. Countries like Belize offer highly skilled talent at a lower cost compared to the United States and Canada.
While salaries are essential when factoring in the cost of hiring abroad, there are a multitude of other costs to be aware of. From overtime, pay requirements to social security contributions, hiring abroad requires more than calculating your new employee’s wage.
Aside from required costs, employers must also keep in mind that offering supplementary benefits, like coworking passes or gym memberships, help with employee retention and satisfaction.
This article will guide you through the costs of hiring in Belize.
Mandatory Costs of Hiring in Belize
When it comes to hiring in Belize, there are mandatory costs to consider, such as salary, taxes, benefits, overtime pay, and severance pay. In order to be compliant with local labor laws and regulations, employers looking to hire in Belize must adhere to mandatory costs, minimum wage requirements, types of leave, and overtime pay, among other things.
Salary Considerations
While Belize is known for its agricultural and tourism industries, the country has skilled workers in manufacturing, telecommunications, and customer service.
The current minimum wage in Belize is BZD 5.00 per hour, which is approximately USD 2.50 per hour. Employers must adhere to the minimum wage requirements. However, salaries vary depending on the industry you’re looking to hire in. For customer service representatives or skilled software developers, the salaries will be higher than the minimum wage.
Despite that, salaries in Belize are significantly lower than in the United States and Canada. Belize’s cost of living index ranks 50th in the world with an overall score of 48.0.
Taxes and Benefits
When hiring in Belize, it’s essential to be aware of the mandatory taxes and contributions an employer must pay. Depending on the salary, employer costs and contributions range from 5% to 8.13%.
Paid Leave
Belize has a few different types of paid leave for employees. Employees are entitled to 2 weeks of paid time off each year, in which they generally take it all at once.
For sick leave employees are entitled to 16 days of sick leave. The employer and social security pay sick leave, the employer only pays the difference between social security and the salary. Belize also has 14 weeks of partially paid maternity leave.
Additionally, employers must also keep public holidays in mind — Belize has 13 public holidays in which employees are not required to work.
Overtime Pay
The standard work week in Belize is 45 hours over the span of 6 days a week. If an employee works overtime, they are entitled to 150% of their regular wage.
Severance Pay
Severance pay in Belize depends on the seniority of the employee. If the employee has worked for the company for 5-10 years, they earn one week’s earnings for each year completed. For employees who have worked for over ten years they’re entitled to 2 weeks’ earnings for each year.
Supplemental Costs of Hiring in Belize
While there are statutory benefits an employer must provide to employees, like paid vacation, there are also supplemental benefits. Offering additional benefits will help attract top talent during the recruiting process. While offering more benefits may cost more, it will help with employee performance and retention.
Benefits
Making sure your new employees are happy and healthy is critical, and achieving this can be done with a benefits package. Many employers choose to offer private health insurance for their employees. The price will vary significantly depending on the type of private health insurance and coverage. Common providers for health insurance in Belize include Cigna Global, International Medical Group, and Bupa/IH.
Other benefits to consider include flexible working arrangements, retirement savings plans, or extra paid time off.
Workspace Costs
Employers need to take workspace costs into account when hiring in Belize. Since your new hire will be working remotely, they need to have a home office set up or a coworking membership.
Providing a home office stipend can be hugely beneficial. The home office stipend can go towards a company laptop, ergonomic office chairs, or antivirus software; after all, keeping remote employees secure is critical. Coworking offices aren’t hugely available in the country, but Founders Hub Belize in Belize City offers memberships ranging from BZD 300 to BZD 1000 per month.
Bonuses and Extras
There are no mandatory bonuses in Belize, but offering year-end bonuses to reward your staff is beneficial. Additionally, employers may want to consider offering their employees a lunch or coffee stipend.
Work with Borderless
Hiring in Belize may feel overwhelming, especially with so many different costs to keep in mind. Working with an Employer of Record (EOR) can help take the stress out of global hiring. An EOR like Borderless will do the heavy lifting, guaranteeing that you compliantly hire and pay employees in Belize.
To get started, book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
