What are the income tax rates for employees in Barbados in 2026?

From 1 January 2026, employment income is taxed at 11.5% on the first BBD 50,000 and 27.5% above that. Employers withhold the tax through PAYE and pay it to the Barbados Revenue Authority each month.

When are NIS contributions due in Barbados?

Employers pay NIS for each month by the 15th of the following month. The employer pays 12.75% and the employee 11%, both on earnings up to BBD 5,360 a month. Each side also pays 0.25% to the Resilience and Regeneration Fund on gross earnings.

How does Good Balance Global hire in Barbados?

As your Employer of Record (EOR), we employ your hire under a Barbadian contract, register them with NIS and the Barbados Revenue Authority, and run monthly payroll. You direct the work, and we handle withholding, contributions, and employment records.

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Payroll and benefits guide

Barbados

CapitalBridgetown

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyBBD (Barbadian Dollar)

Payroll FrequencyMonthly

Employer Taxes13%

Employee Costs11.25%

Overview

Languages: English
Income tax: 11.5% – 27.5%
VAT: 17.5%

Contributions

Employer

12.75%

National Insurance (NIS)Insurable earnings capped at BBD 5,360/month (BBD 1,238/week)

0.25%

Resilience and Regeneration FundOn gross earnings

13%

Total employer cost

Employee

11%

National Insurance (NIS)Insurable earnings capped at BBD 5,360/month

0.25%

Resilience and Regeneration FundOn gross earnings

11.25%

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

National Insurance and Social Security Service

Paid To

Employer and employee NIS contributions and the Resilience and Regeneration Fund

Due Date

By the 15th of the following month

Method

Monthly contribution return with payment

Authority Payment

Barbados Revenue Authority

Paid To

Income tax withheld under PAYE

Due Date

Monthly, for the previous month's payroll

Method

PAYE return with electronic payment

Minimum Wage & Working Hours

Minimum wage: BBD 10.71 / Hourly; Effective 21 January 2026; the government has adopted automatic 2% annual increases
Standard working hours: 40 hours per week
Overtime: At least 150% of the ordinary rate

Leave

Annual leave3–4 weeks3 weeks after 1 year of service; 4 weeks after 5 years
Maternity leave12 weeksEligible employees receive a maternity benefit from NIS

Leave type	Duration	Notes
Annual leave	3–4 weeks	3 weeks after 1 year of service; 4 weeks after 5 years
Maternity leave	12 weeks	Eligible employees receive a maternity benefit from NIS

Termination

Notice period: Set by the Employment Rights Act; increases with length of service
Severance pay: After 2 years of continuous service: 2.5 weeks of basic pay per year for the first 10 years, 3 weeks per year for years 10–20, and 3.5 weeks per year for years 20–33
13th salary: Not mandatory

FAQ

Sources

Last updated: November 1, 2026

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