Guyana
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
60147 GYD per month
Labor Law
Laws that regulate Labor Relationship
• Labour Act
Onboarding guide
Requirements for a labor contract
• ID number
• Address
• Date of birth
• Email
• Tax ID number (TIN)
• NIS number (National Insurance Scheme)
Pre-hire Medical exam
Yes, mandatory
Types of contracts
• Indefinite term
• Fixed-term
• Specific work or time
Probation Period
Probation period is 3 months, unless the parties agree to a different period.
Are offer letters mandatory in the country?
Not mandatory
Are digital signatures in labor contracts valid?
Not permitted.
Mandatory onboarding documents
• Copy of Identification card
• Copy of NIS (National Insurance Scheme) card
• Copy of TIN (Taxpayer ID number) Certificate
Statutory benefits
Annual Bonus
Doesn’t Apply. However, employers are allowed to give a bonus if they want
Additional bonus
Doesn’t Apply
Leaves (medical, maternity, paternity, etc.)
• Maternity Leave: 13 weeks maternity leave, starting not earlier than six weeks before expected birth date. NIS (Social security) pays 70% of a regular wage to a limit of $196,000 per month
• Paternity Leave: it is not stipulated by law
• Sick leave: is not an entitlement but employees are allowed both certified and uncertified sick leave. Payment for sick leave is made by the National Insurance Scheme after the third day of illness.
Annual Leave (days per year)
Employees are entitled to paid holidays after each six or twelve months.
Minimum holidays set out in the Holidays with Pay Act are computed as follows:
• For those employed on a weekly, fortnightly or monthly basis, one day for every completed month of service.
• For daily paid employee, one day for every twenty days worked.
• For hourly paid employees, one day for every one hundred and sixty hours worked.
How do vacation days expire?
Vacation days in Guyana expire after one year. This means that if an employee does not take their vacation days within one year of accruing them, they will lose those days.
The Guyana Labour Act Chapter 98:01 sets out the rules for vacation days in Guyana. The Act states that employees are entitled to at least 15 days of vacation per year after they have worked for one year. The Act also states that vacation days must be taken within one year of accruing them.
Official Holidays
• Jan 01 New year’s day
• Jan 02 New year holiday
• Feb 23 Republic day
• Mar 07 Holi
• Apr 07 Good Friday
• Apr 10 Easter Monday
• May 01 Labor day
• May 05 Arrival day
• May 26 Independence day
• Jun 29 Eid al-Adha
• Jul 01 Caricom day
• Aug 01 Emancipation day
• Sep 28 Youman Nabi
• Nov 12 Deepavali
• Dec 25 Christmas
• Dec 26 Boxing day
Working on holidays and Sundays
According to the Guyana Labor Act Chapter 98:01, employees who work on Sundays and public holidays are entitled to extra pay. The amount of extra pay is determined by the employee’s regular rate of pay and the number of hours worked as follows:
Sunday Up to 8 hours: 1.5 times the regular rate of pay
Sunday Over 8 hours: 2 times the regular rate of pay
Public Holiday Up to 8 hours: 2 times the regular rate of pay
Public Holiday Over 8 hours: 3 times the regular rate of pay
Number of Working hours
8 hours a day, 40 hours a week
Overtime
Social Security (what does it cover)
The Social Security Scheme in Guyana covers a wide range of benefits, including:
• Old age pension
• Invalidity pension
• Survivors’ benefits
• Maternity benefits
• Sickness benefits
• Work injury benefits
• Unemployment benefits
• Funeral grants
Payroll
Salary payment currency
Guyanese dollar (GYD)
Can salary be paid in a different currency other than the local currency?
No.
Payment frequency
• Weekly
• Bi-weekly
• Monthly
VAT percentage
14%
Income Tax
Resident individuals will be entitled to a personal allowance of GYD 780,000 or 1/3 of their income (per annum), whichever is greater.
• Individuals with chargeable income of less than GYD 1,560,000 per annum pay tax at the rate of 28%;
• where their chargeable income exceeds GYD 1,560,000 per annum, the incremental rate of tax applicable is 40%.
Tax Payer Identification Number
Taxpayer Identification Number – TIN
Offboarding
Voluntary resignation
Voluntary resignation is the act of an employee leaving their job of their own accord. In Guyana, there are a few rules that employees must follow when resigning voluntarily.
• Notice period: Employees are required to give their employer a notice period of at least one week.
• Reason for resignation: Employees are also required to provide their employer with a reason for their resignation. This is not always necessary, but it is generally considered good practice to do so.
Contract termination
A contract of employment for an unspecified period of time may at any time be terminated:
• by mutual consent of the parties
• on any ground of redundancy
• by either party
(a) for good or sufficient cause:
(b) by notice given to or served upon the other party
• by death of the employee or the employer
• for dismissal (see justified and unjustified dismissal)
• termination of employment due to redundancy.
Justified Dismissal
•An employer is entitled to dismiss summarily without notice or payment of any severance or redundancy allowance or terminal benefit any employee who is guilty of serious misconduct. The serious misconduct referred to is restricted to that conduct which is directly related to the employment relationship and has a detrimental effect on the employer’s business.
• Termination of employment due to redundancy.
Unjustified Dismissal
The following reasons do not constitute good or sufficient cause for dismissal or for imposition of disciplinary action:
• an employee’s race, sex, religion, color, ethnic origin, national extraction, social origin, political opinion, family responsibility, or marital status;
• an employee’s ago, subject to any law or collective bargaining provisions regarding retirement;
• a female employee’s pregnancy or a reason connected with her pregnancy;
• an employee’s absence from work because of sickness or injury certified by a registered medical practitioner;
• an employee’s absence from work due to compulsory military service or other civic obligation in accordance with any law;
• an employee’s participation in industrial action in conformity with the provisions of any law or collective labour agreement;
• an employee’s refusal to do any work normally done by an employee who is engaged in industrial action as described in the previous item;
• the filing by an employee of a complaint or the participation in proceedings against an employer involving alleged violations of any rule or law.
Severance pay is equivalent to:
• Payment for all hours worked up to the last day and owed
• Payment of all Vacation Days accrued to last day worked
• Any other benefit entitled (pro-rated)
• Payment in lieu of Notice: 2 weeks notice for employees with less than 1 year of service and 1 month notice for more than 1 year of service. (Doesn’t applies for justified dismissals)
Final pay is required within 2 days or if contract specifies, it may be paid within the normal payroll cycle.
Minimum Notice Period
Where a contract of employment for an unspecified period of time is being terminated for any reason of redundancy, such contract of employment, shall except during the probationary period, be terminated by the employer upon giving the following minimum period of notice in writing:
• two weeks where the employee has been employed by the employer for less than one year
• one month, where the employee has -been employed by the employer for one year or more
This periods of notice shall also be the periods of notice that the employee shall give to his employer.
Immigration
Visa process
• They must receive a job offer from an employer in the country.
• Then, they must accept this offer.
• Fill out the permit application and attach their passport photo.
• The employer must contact the Ministry of Home Affairs.
• Once the employee submits their application, their employer and immigration services will have to approve them for a work permit.
Visa documents
• Passport, must be valid for 6 months ahead of the span of stay.
• Old Passport
• Photo
• Air Ticket
• Medical Reports
• Police Clearance Certificate (PCC)
• Bank Statement
• Hotel Voucher
• Company Registration
• Invitation Letter From Company
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