Belize is home to low hiring costs and shares commonalities with North America, making it a fantastic choice to outsource your talent globally, build brand presence, and embrace diversity and inclusion. An employer of record (EOR) is one of the most widely used and effective ways for a foreign company to expand globally and hire remote talent.
The Benefits of Hiring Remote Workers in Belize
Lower Hiring Costs
Belize enjoys a very affordable cost of living. This means that you can hire and pay top talent while boosting your bottom line. As of January 2023, the minimum hourly wage in Belize is BZD 5.00, around US$2.50, making it significantly lower than many other countries in the region and lower than anywhere else in North America and Europe. With no taxes on capital gains, oil companies are only subject to a 25% flat tax while all other businesses, depending on their revenue, pay a business rate of 1.75% or 3%.
In addition to upfront salary costs, Belize is home to a unique social security and taxation system. Both employers and employees contribute to mandatory social security programs on a progressive scale with wage base limits in which each tax is calculated as a percentage of base salary. The cost of hiring an employee in Belize, in terms of payroll costs, is about 1.12 times base salary. With a relatively low administrative burden, foreign employers can hire cost-effective talent across industries.
Similar Work Culture
Belize shares the standard work hours ranging between eight and nine hours per day. It’s the only English-speaking country in Central America, eliminating the communication barriers of international hiring. Many locals also speak fluent Spanish, so you can hire talent for both English and Spanish-speaking markets.
Time Zone Overlap
The Central American country observes Central Standard Time, making it seamless to work with North American coworkers. Collaboration with Europe will likely take place during mornings in Belize which equate to mid to late afternoon across Europe.
Shared Public Holidays
Belize celebrates 13 public holidays, many of which fall on the same dates as those observed in North America.
- January 1: New Year’s Day
- March 9: Baron Bliss Day
- March/April: Good Friday
- March/April: Holy Saturday
- March/April: Easter Monday
Shops begin closing on Holy Thursday, marking the celebration of Easter from Thursday through to Sunday of which three days are public holidays.
- May 1: Labor Day
- May 24: Commonwealth Day
- September 10: St George’s Caye Day
- September 21: Independence Day
- October 12: Columbus Day (also known as Pan-American Day)
- November 19: Garifuna Settlement Day
- December 25: Christmas Day
- December 26: Boxing Day
The overlap of and close range in public holidays with North America facilitate shared cultural understanding, work norms, and most importantly, collaboration.
Why Should You Hire Employees Using an Employer of Record?
Without permanent establishment (PE) status, a company cannot do business in a foreign country. Setting up your local entity in Belize could be costly and time-consuming. An alternative is to partner with an employer of record (EOR).
An EOR is your employment partner, assisting you from hiring, onboarding, managing remote employee as well as to creating the right compensation and benefits packages. The EOR will do so in adherence with local employment laws. Relying on the services of an EOR is one of the most cost-effective and easiest ways for foreign employers to expand globally.
Manage Employees through a Global Employer of Record
There are several areas of legal compliance that a foreign employer must meet when hiring employees in Belize.
Employment Contracts
Foreign employers can hire employees for both definite and indefinite terms. For periods of engagement not exceeding three months, among other criteria, the Labor Act accepts verbal contracts, which are not valid and binding unless work has begun within one month from the date of agreement. Longer lengths of work, on the other hand, will require written contracts with the consent of the employee.
Although full-time employees of both indefinite and fixed-term contracts receive benefits, the extent of basic entitlements such as annual paid time off or severance pay, among others, may increase with seniority. The implication for foreign employers to recognize employment as automatically indefinite or successive fixed terms, is to conclude lengths of contracts appropriate to the requirements of work, and be aware that in doing so, employees’ benefits and entitlements are protected.
Furthermore, foreign employers are strongly encouraged to put an employment relationship in writing due to the remote nature of work foreign employers share with their Belize-based employees. This will ensure they meet compliance and establish clear expectations from day one. An EOR like Borderless is here to support you in navigating the requirements of employment, ensuring your compliance with evolving local regulations.
Paid Leaves
Belizean employees receive two paid weeks off after one year of service. Generally, they take the entire two weeks in one go, but can also negotiate to take one week off at a time.Employees are also entitled to the aforementioned 13 public holidays. If they work during this time, the employer compensates them at double their wage.Employers must also cover up to 16 days of sick leave with full pay. 14 weeks of fully paid maternity leave is offered - two weeks prior and seven weeks after delivery.An EOR like Borderless offers the clarity you need to provide the different types of mandatory leaves in employment contracts.
Overtime
Different sectors follow different overtime regulations. The Shops Act mandates overtime after employees work over eight hours per day while the Labor Act requires employers to pay overtime after nine hours per day and/or after six workdays per week. An employee working overtime is mandated to 1.5 times their base pay.
Social Security Benefits
While employers in Belize do not need to provide healthcare insurance, they must pay into the National Health Insurance, the country’s public healthcare program. Both the employer and employee make social security contributions, but residents must first self-register. Social security programs in Belize include benefits for sickness, maternity, employment injury, retirement benefits, and non-contributory pension, among others. Employers pay 5.5% to 8.13% while employees do so at 1.88% to 4.5%, splitting the mandatory 10% weekly contribution to social security.
An EOR like Borderless will provide the revised contributions to social security that both you, the foreign employer, and your employees, will need to make.
Other Employer Responsibilities
Probationary period in Belize is typically two weeks but can be six months at most. Within the first two weeks of an oral contract which is considered its probationary period, either an employee or employer can terminate it at will and without notice. Furthermore, a severance package is required for employees who have been employed for 5 or more years. Those with five to ten years tenure are entitled to one week's salary for each year of employment. Employees with over 10 years tenure are entitled to two weeks' salary for each year of employment.
An EOR like Borderless can ensure that you fulfill your employer responsibilities in the event of separation in employment.
Choosing the Right EOR for Your Business
There are several key considerations for employers to make the most informed decisions in choosing the best EOR for their businesses.
- Geographic coverage: Make sure that your EOR of choice can legally operate in Belize.
- Employment services: The suite of employment services offered by a competitive EOR should cover hiring, onboarding, payroll, benefits, and HR management.
- Reputation: When selecting an EOR, get a sense of its past work and experience. Make sure that it has a great track record and the local know-how to bring you value add.
- Cost: A high-value EOR’s pricing should be transparent and reasonable.
- Flexibility: An EOR should offer customized employment solutions to meet your specific needs and requirements.
Overall, foreign employers should choose an EOR that can provide cost-effective, reliable, and compliance-first employment solutions. This will enable you to navigate and expand into foreign waters with confidence, ease, and trust.
Simplify Global Hiring with the Borderless EOR
Borderless is your employer of record of choice. In over 170 countries, we are ready to help you hire, onboard, manage, and pay remote employees, wherever you are. Our experienced team of legal experts provides guidance on compliance and assists employers all over the world in navigating the cultural and professional environment in the country they choose to do business in. 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.
