Hire compliantly inBelize Talk to an Expert

Employees are entitled to at least 2 working weeks of paid annual leave after completing 1 year of service with the same employer. Paid annual leave should be taken all at once, but it can be split into two periods with the agreement of both the employer and the employee. The employer and employee may also agree for the employee to take paid annual leave before completing the 1 year of service. The employer must allow the employee to take paid annual leave within 6 months of its accrual. Only in the instance of termination is payment in lieu of annual leave permissible.

When an employee takes annual leave in one period, the employer must pay the wages for the annual leave no later than the day before the leave commences. If the employee takes the leave in two periods, half of the pay will be due the day before each period begins.

Employees who have worked for at least 60 days for the same employer within the last 12 months are entitled to paid sick leave when working under that same employer. An eligible employee is entitled to 16 working days of paid sick leave in a 12-month period. The wages paid during sick leave should correspond to the employee's wages during the last 16 days of work before the sick leave began. The employer may request, in writing, a medical certificate. If the employee fails to produce the certificate within 48 hours of the request, the sick leave is not required to be paid. Nothing prohibits the employer and employee from agreeing to more than 16 days of sick leave in a 12-month period.

When the employee is also entitled to Social Security benefits, the first 3 days are to be paid at the employee's normal rate of wages, the following 13 days should be paid as the difference between the Social Security entitlement and the normal rate of wages, and after that, only the entitlements from Social Security will be paid.

Belizean labor law grants employees a total of 14 weeks of fully paid maternity leave. Maternity leave shall be taken as follows:

• Up to a maximum of 7 weeks before the expected date of confinement
• The remaining maternity leave balance after the expected date of confinement
• 2 weeks before and 7 weeks after the expected date of confinement is mandatory

Employees are eligible for this leave if they have been employed for at least 150 days with the same employer during the 12 months immediately preceding confinement.

If an employee is entitled to receive maternity benefits from Belize's Social Security Fund, the employee will receive maternity benefits from Social Security, and in addition be entitled to be paid by her employer the difference, if any. The state maternity allowance is equal to 80% of the woman's average weekly insurable earnings in the 39 weeks before maternity leave commences. The minimum weekly benefit is BZD 44 (Belizean dollars) and the maximum weekly benefit is BZD 384. Women must have paid 50 contributions to the Social Security Fund to qualify to receive this benefit.

The Social Security Fund of Belize provides a lump sum grant of BZD 300 (Belize dollars) to insured employees at childbirth if their spouses are not entitled to it and if they have paid at least 50 contributions and at least 25 contributions in the 39 months immediately preceding the maternity leave. There are no provisions for paternity leave in Belize.

Minimum Wage

The minimum wage is currently at BZD 5 (Belize dollars) per hour for all employees.

Salary must be paid at regular intervals, not less than:

• Once a week in the case of employees whose wages are fixed by the hour, day, or week
• Once a fortnight in the case of employees whose wages are calculated solely on a piecework or output basis
• Once a month in the case of employees whose wages are fixed on a monthly or annual basis

Overtime, Holiday & Vacation Pay

Employees are entitled to overtime payment equal at least 1.5 times the regular pay for working over 9 hours in a day (45 hours in a week), overtime hours worked on holidays, Sundays, and weekly rest days. For work done on Christmas, Good Friday, or Easter, the payment is at least 2 times the regular pay.

Notice Period

The Belizean Labor Act states that employment contracts can be terminated by either party with the following notice periods, depending on the duration of service:

• If the employee has worked for more than 2 weeks but less than 6 months - 1 week
• If the employee has worked for more than 6 months but less than 2 years - 2 weeks
• If the employee has worked for more than 2 years but less than 5 years - 4 weeks
• If the employee has worked for more than 5 years - 8 weeks

There are exceptions to the notice period requirements and employers can provide pay in place of notice instead of observing the notice period.

Severance Benefits

In Belize, where an employee who has been continuously employed by any employer for a period of:

• 5 to 10 years, and
  • Their employment is terminated by the employer, or
  • They retire on or after attaining the age of 60 years or
  • They retire on medical grounds,
• That employee shall be paid a severance pay of 1 week’s wages with respect to each completed year of service

If an employee has been continuously employed for over 10 years and their employment is:

• Terminated by the employer for reasons, which do not amount to dismissal, or
• Ended because the employee retires on or after attaining the age of 60 years or on medical grounds, or
• The employee abandons the service of an employer for a good and sufficient cause, or
• The employee who resigns after a minimum of 10 years is eligible for a gratuity equal to severance pay, or
• The employee is terminated on the expiration of a contract for a definite period.

That employee shall be paid a severance pay of 2 weeks’ wages for each complete year of service.

Pension

Belize has a compulsory retirement benefits scheme for employees working in government and private entities. All employees over 14 years of age are insured in the scheme. For employees working in government organizations, the retirement age is 60 years, and for private-sector employees, the retirement age is 65 years.

For retired persons who have paid at least 500 contributions, the amount of weekly retirement pension is equal to 30% of the average weekly remuneration, supplemented by 2% of the average weekly pay for every 50 weeks of contribution in excess of 500 weeks of contribution up to a total of 750 weeks’ contributions and 1% of the average weekly remuneration for every 50 weeks of contributions over 750 weeks. The maximum pension is 60% of average weekly insurable earnings. The minimum weekly pension is BZD 47 (Belize dollars).

Dependents/Survivors Benefits

The Social Security fund of Belize provides benefits for survivors in case of death of insured employees who were recipients of or eligible to receive either an old-age pension or disability pension at the time of their death. This benefit is paid to surviving spouses, children, or parents of the deceased in the absence of spouse and children. Eligibility requirements range from age and disability to a dependent's marital status. Amounts range from 1/4 to 2/3 of the pension of the deceased employee. Employee and employer contribution rates are the same as those for the retirement/pension scheme. The minimum pension amount is BZD 47 (Belize dollars) per week.

Invalidity Benefits

The Social Security Fund of Belize provides for disability benefits to insured people below 60 years of age. The disability pension may not be below BZD 47 (Belize dollars) per week or exceed 60% of the weekly remuneration of the insured person. Persons who become disabled before the age of 60 years but do not fulfill the conditions of contributions are eligible to receive a disability grant in the form of a lump sum (the minimum of BZD 800). Employee and employer contribution rates are the same as those for the retirement scheme.

Personal Income Tax

The income of employed persons is taxed at a fixed rate of 25%. Gross interest income from fixed deposits is charged at 5%, and income from winnings of lottery or similar activities is subject to tax at 15%. There are deductions available from BZD 19,600 to BZD 25,600.

In the case of married individuals, the income of the wife is considered to be the income of her husband and is taxed in his name. If both husband and wife apply in writing to the Tax Commissioner, the income of the woman can be taxed separately.

Visas

Belize has the following visa categories:

• Business and visitor visa
• Transit visa
• Temporary employment visa
• Student visa
• Dependent’s visa
• Digital Nomad Visa

The immigration laws of Belize require persons who wish to enter the country to possess a valid passport and visa. Foreign nationals must also have proof of a return journey or onward journey. Nationals of many countries do not require an entry visa for Belize, including Australia, Brazil, Canada, France, Germany, Ireland, Japan, Mexico, South Africa, Spain, the United Kingdom, and the United States of America, among many others.

Work Permits

Foreign nationals who wish to work in Belize are required to obtain a temporary employment permit. Employees must provide proof of employment in Belize and have a voucher issued by the Minister of Labor, which allows them to stay in Belize for the duration specified in the permit.

Foreign nationals may also be admitted on a permanent basis for employment by providing, among other documents, proof of employement in Belize.

The minimum age of employment in Belize is 14 years. Young workers under the age of 18 years cannot be employed in jobs that are dangerous to their moral or physical development. Persons below 18 years of age are prohibited from employment in night shift jobs.