Human Resource is one of the integral parts of running a business. The company cannot run a business without its employees. One crucial aspect in managing your Human Resource is the payroll. Employer and employee relationship cannot work without providing incentives on both parties. This is why companies have dedicated HR or accounting personnel who can handle the confidentiality, accuracy, and timely record keeping and maintenance of payroll.
Seychelles Wage Overview
As per the Seychelles Labor Law of 2020, the Minimum Wage per employee is set at SCR 5,804/month or approximately USD 387/month at the current exchange rate, and the minimum age of employment is currently set at 15 years old.
On the computation of salaries, it is essential to know that there are different rates of taxes depending on the wage level. It’s also worth noting that expats working in Seychelles are subjected to higher tax rates as compared to Resident Citizens.
Apart from the taxes, the company must also comply with the Pension Fund contribution in Seychelles, which is only applicable to Resident Citizens. The company must deduct 3% from the employee’s Gross salary and remit the amount withheld to the Seychelles Pension along with the required 3% share from the employer’s contribution.
The company has an obligation to withhold the tax and pension from the employees and pay the net salaries each month. The withheld tax and pension must then be paid towards the SRC and the Pension Funds on or before the 21st of the following month.
Other benefits an employer must note are the entitlement of Public Holidays of the employees. In Seychelles, there’s an average of 10 to 12 Official Public Holidays in a year. If the employees worked on those Holidays, the employer is obliged to pay double their daily salary rate.
Another benefit that must be complied with is the payment of the 13th Month Salary. The 13th-month salary is payable only to employees who have rendered at least 12 months of service in the company. The 13th-month salary is usually paid between December of the current year till mid of January of the succeeding year.
Apart from the first two benefits, an employee is entitled to 21 days of Annual Vacation Leave, 4 Days of Compassionate Leave, 30 Days of Sick Leave, and 14 Weeks of Maternity Leave.
Looking for a Payroll and HR Expert in Seychelles?
Our firm, CRESCO Accounting, provides comprehensive payroll and HR solutions. We are proud to have our very own Internal Payroll Management System, which enables us to automate the payroll calculations, statutory requirements such as tax and pension computation, leave and absences tracking, and payslip generation. We are happy to discuss any of your requirements. Give us a call or drop us an email now.