Belize Labor Law Guide for Hiring Employees and Contractors

This labor law guide for Belize has important information for businesses looking to hire employees or contractors in the country. Belize is a country in Central America.

Belize’s economy, as reported for the full year 2023, demonstrates steady growth with GDP reaching approximately USD 1.9 billion. The country’s pivotal sectors include tourism, agriculture (especially sugar and citrus), and marine products.
Additionally, Belize has been developing its information technology and services sector gradually.

The currency in Belize is the Belizean Dollar (BZD), which is pegged to the US dollar at a consistent rate of 2 BZD per 1 USD.

Belize

Minimum Wage

BZD 3.30 per hour

Overtime Wage

1.5 times the regular hourly wage

Meal Breaks

1 hour

Rest Breaks

15 minutes

Working hours

8 hours/day, 45 hours/week

Salary Payment Cycle

Bi-weekly

Payroll Taxes

Social Surcharge, Business Tax

Paid Vacation

1 week after first year; 2 weeks for each subsequent year

Overtime Hours

8 hours/day, 45 hours/week

Night Shift Hours

Not mandated

Holidays

13 days

No Work Days

Sunday

Hiring Laws in Belize

When hiring workers in Belize, businesses are required to register locally.

The cost of setting up a business entity ranges from BZD 500 to BZD 1,000, and the incorporation process typically takes about 5-7 business days.

Employers are required to sign a formal employment contract with employees, which should include clauses regarding job responsibilities, salary, working hours, leave entitlements, and termination procedures.

Contractors and employees are treated separately under Belizean labor laws, with contractors having more flexible terms of engagement but fewer statutory benefits compared to full-time employees.

Minimum Wage in Belize
Belize mandates a minimum wage, which is currently BZD 3.30 per hour.
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This federal minimum wage rate applies generally, without exceptions for specific industries or job types. The country does not require different minimum wages for various states, as Belize operates under a centralized wage law. Employers are also obligated to provide holiday pay to employees.
Working Hours in Belize
Standard working hours in Belize are 8 hours a day, totaling up to 45 hours per week.
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Overtime is calculated after the standard 8 hours per day and 45 hours per week, compensated at 1.5 times the regular hourly rate. While there are no specific pay rates mandated for night shifts, regular wage policies apply. The minimum age for hiring is 14 years, though restrictions exist to protect minors from hazardous work. Using child labor is strictly prohibited and regulated by the Ministry of Labour.
Payroll and Taxes in Belize
Employers must make several payroll deductions, including contributions to the Social Surcharge and Business Tax. These deductions ensure that employees receive benefits like health insurance and retirement savings.
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Income tax rates in Belize are progressive and summarized in the table below:
Income Level (BZD) Applicable Tax Rate
Up to 26,000 0%
Above 26,000 25%
Additional payroll taxes include the Municipal Business License Fee and Social Security contributions, which are shared by both employers and employees.
Statutory Leave Policies in Belize
Belizean employees are entitled to various leave types, including:
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Paid Vacation: 1 week after the first year; 2 weeks for each subsequent year

Maternity Leave: 12 weeks (6 weeks before and 6 weeks after childbirth)

Paternity Leave: Not mandated by law

Sick Leave: 16 workdays annually on full pay

Adoption Leave: Not specified by law

Mandated Holidays: 13 public holidays annually

The list of holidays in Belize is as follows:

Holiday NameDate
New Year’s DayJanuary 1
Baron Bliss DayMarch 9
Good FridayVariable
Holy SaturdayVariable
Easter MondayVariable
Labour DayMay 1
Sovereign’s DayMay 24
National DaySeptember 10
Independence DaySeptember 21
Pan American DayOctober 12
Garifuna Settlement DayNovember 19
Christmas DayDecember 25
Boxing DayDecember 26
Employee Benefits in Belize
Belizean employees receive several benefits, primarily through the Social Security system. This includes:
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  • Retirement Benefits
  • Healthcare Benefits
  • Maternity Benefits
  • Sick Benefits
  • Pension Plans
  • Annual Bonuses
Employers must contribute to these programs periodically, ensuring employees receive comprehensive support.
Employee Termination in Belize
Belize does not follow At-Will Employment laws, and labor laws impose certain restrictions on employment termination. The termination process involves:
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  1. Notice Period: Employees must receive a notice period, typically ranging from one to three months, depending on seniority and duration of employment.
  2. Termination Benefits: Severance payment, accrued unused leave, and any other contractual entitlements.
  3. Legal Challenges: Employees have the right to contest unjust termination through labor unions or legal channels.
Employment can be legally terminated on grounds of gross misconduct, redundancy, or other reasons stipulated in the employment contract.

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