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Labor Law Compliance Guide for Antigua

Antigua Country Guide for Hiring Employees and Contractors

Antigua, a vibrant island nation in the Caribbean, reported an economy with a Gross Domestic Product (GDP) of approximately $1.6 billion USD for the full year of 2023.

The economy is primarily driven by tourism, which accounts for around 60% of the GDP, followed by financial services, manufacturing, and agriculture. Other significant sectors include construction and information technology, contributing to the country’s economic diversification efforts.

The country’s currency is the Eastern Caribbean dollar (XCD), which is pegged to the US dollar.

Antigua

Minimum Wage

$9 XCD per hour

Overtime Wage

1.5 times the regular hourly rate

Meal Breaks

Not mandated

Rest Breaks

Not mandated

Working hours

8 hours/day, 40 hours/week

Salary Payment Cycle

Bi-weekly or monthly

Payroll Taxes

Social Security Contributions (SSC)

Paid Vacation

2 weeks for the first year, 3 weeks after 5 years

Overtime Hours

Over 8 hours in a day or 48 hours in the week

Night Shift Hours

Not defined

Holidays

12

No Work Days

Sunday

Hiring Laws

When hiring workers in Antigua, businesses must register as a local entity with the Registrar of Companies. The cost of setting up a business entity typically ranges from $1,200 to $2,500 XCD, depending on the business structure, and the incorporation process generally takes 3-6 weeks.

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Employers are required to provide employees with written contracts that clearly outline the terms of employment, including job responsibilities, salary, working hours, and conditions for termination. Employment agreements should also contain clauses on confidentiality, non-compete agreements, and dispute resolution mechanisms.

Antigua’s labor laws differentiate between employees and independent contractors, with employees receiving more comprehensive protections and benefits under the law. Additionally, businesses must comply with local labor regulations regarding workplace safety, anti-discrimination policies, and employee rights.

 

Minimum Wage

Antigua enforces a minimum wage law, with the current minimum wage set at $9 XCD per hour as of 2024. This rate is standardized across the country and applies to all employees, regardless of their industry or job type.

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There are no specific exemptions for certain jobs or categories of workers, ensuring that all employees receive at least the minimum wage. Additionally, Antigua does not have state-mandated minimum wage rates that differ from the federal rate. Employers are also required to provide holiday pay to their employees at the standard hourly rate during recognized public holidays.

Working Hours

The standard working hours in Antigua are 8 hours per day and 40 hours per week. Overtime is defined as any work performed beyond the standard 40 hours per week, and employers must compensate employees at 1.5 times their regular hourly rate for overtime hours. Night shifts, typically scheduled between 10 PM and 6 AM, are paid at 1.25 times the regular hourly rate.

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The minimum legal working age in Antigua is 16 years old, with strict regulations in place to prevent child labor, especially in hazardous occupations. Employers must adhere to labor laws that protect young workers, ensuring safe working conditions and limiting the types of work they can perform.

Payroll and Taxes

Employers in Antigua are required to make payroll deductions for Social Security Contributions (SSC). The SSC rate is 7.5%, with employers contributing 5% and employees contributing 2.5%. These contributions provide employees with benefits such as retirement pensions, sickness and maternity benefits, and unemployment insurance. Antigua does not impose an income tax on employment income, meaning there are no additional income tax deductions from salaries.

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Income Level

Applicable Tax Rate

All levels

0% (No income tax)

 

Statutory Leave Policies

Antigua mandates several types of leave for employees, including paid vacation, maternity leave, paternity leave, and sick leave. Employees are entitled to 2 weeks of paid vacation per year, increasing to 3 weeks after 5 years of continuous service. Maternity leave is granted for 12 weeks, with at least 8 weeks paid, while paternity leave is available for up to 2 weeks, though it may not always be paid. Sick leave is provided for up to 10 days per year, with a medical certificate required after 2 days of absence.

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Name of Holiday

Date

New Year’s Day

January 1

Independence Day

November 1

Good Friday

Variable (April)

Easter Monday

Variable (April)

Labour Day

May 1

Whit Monday

Variable (May/June)

Emancipation Day

August 1

National Heroes Day

October 1

Thanksgiving Day

First Friday in October

Christmas Day

December 25

Boxing Day

December 26

National Kadooment Day

May 5

 

Employee Benefits

Employers in Antigua are required to contribute to the Social Security program, which provides employees with retirement pensions, sickness and maternity benefits, and unemployment insurance. While healthcare benefits are not mandatory, many employers offer private health insurance as part of their employee benefits package.

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Additionally, employers may choose to provide gratuity payments or annual bonuses, although these are not legally required. Other common benefits include paid time off, wellness programs, and professional development opportunities.

 

Employee Termination

Antigua does not follow At-Will Employment laws, meaning that employers must have a valid reason for terminating an employee. The termination process requires employers to provide notice based on the length of service: typically two weeks for employees with less than one year of service and one month for those employed longer.

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Employees terminated without cause are entitled to severance pay, calculated as one week’s pay for each year of service. Employees have the right to challenge unfair terminations through labor tribunals or legal channels.

Employers can legally terminate employees for reasons such as gross misconduct, redundancy, breach of contract, or failure to perform job duties satisfactorily. Proper documentation and adherence to legal procedures are essential to avoid legal disputes.

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