Our guide to Payroll in Trinidad & Tobago

Doing Business in Trinidad and Tobago

Investing in Trinidad and Tobago

After over 140 years of success in oil and gas, Trinidad and Tobago has a well-established economy with gas-based production exceeding oil production.

The twin-island republic has one of the most diversified economies in the English-speaking Caribbean from energy and manufacturing to services and eco-tourism.

The Government of Trinidad and Tobago has embarked on a thrust to further diversify the economy by inviting both local and foreign investors to take advantage of available investment opportunities within the country’s non-energy sectors.

Basic Facts about Trinidad and Tobago

Registrations and Establishing an Entity

A local entity must be established in order to process a payroll. The company must:

• Register as a legal entity with the company’s registrar
• Register with the Board of Inland Revenue (BIR) to obtain a BIR number and a PAYE number. This process can take approximately two months.
• Companies are legally obligated to register for a Board of Inland Revenue (BIR) file number to be used in payment of taxes and filing of returns. 
• All companies who hire employees must also obtain a Pay as you Earn (PAYE) number from the BIR. The PAYE number is used to remit taxes withheld from employees’ earnings for PAYE and Health Surcharge. 
• Employers are required by law to register as an employer for national Insurance within 14 days of hiring their first employee.
• The registrations process can take on average 10 to 15 working days.

Banking

Employees can be paid using domestic bank transfers (ACH) or via cheque payment.

The authorities must be paid via cheque. There is an online payment option for NIS, which is in its initial implementation stage; it is not available for public use yet.

Banks are open Monday to Thursday from 8am to 2pm and Fridays from 8am to 1pm and then 3pm to 5pm. Some mall branches are open Monday to Friday from 10am to 5pm. Royal Bank of Canada Trinidad & Tobago Limited opens in certain malls on a Saturday.

Working Week

The regular working week in Trinidad and Tobago is Monday to Friday 8am - 4pm.

Holiday Accrual / Calculations

Employees are legally entitled to 10 days of paid vacation leave at the employee’s basic wage rate for each continuous year of service.

Depending on the nature of the employment contract, national holidays may be granted as paid or unpaid leave. If an employee is requested to work on a holiday, they are entitled to double pay.

Standard payroll calculations will apply for any payment that is made.

Maternity Leave

Female employees are entitled to 13 weeks maternity leave. 6 of the 13 weeks are usually taken prior to the birth of the child and the remaining 7 are to be taken after the birth. The allocation is not mandatory. The female employee must have been continuously employed by the employer for a period of not less than 12 months to be eligible for the maternity benefit.

The employee is entitled to receive 1 month’s leave with full pay and a further 2 months with half pay.

Standard payroll calculations will apply for any payment made.

Paternity Leave

By law, paternity leave is not mandatory in Trinidad and Tobago.

Sickness

Employees are legally entitled to sick leave; however, there is no stipulation in the law as to how much sick leave they can take or whether or not the employee should be paid.

It is common practice to allow employees 14 days sick leave, but whether or not it is paid is dependent on the employer’s policies/practices.

The employee is expected to claim through the NIB if unpaid by the employer.   

National Service

There is no National Service applicable in Trinidad and Tobago.

Minimum Wage

The National Minimum Wage of Trinidad and Tobago has been increased to $20.50 per hour with effect from January 01, 2024.You may refer to https://www.labour.gov.tt/minimum-wage-increase for more information.

Tax & Social Security

The tax year in Trinidad and Tobago runs from January 1st to December 31st.

Income Tax

The Pay-As-You-Earn System (PAYE) is applicable in Trinidad and Tobago and was introduced in 1958.

The employer has the responsibility to deduct taxes from the emoluments (salary, wages, etc.) of their employees in accordance with the PAYE regulations each time a payroll is processed and paid.   The employer should ensure that they receive a TD1 Form from the employee to accurately determine the amount of tax to be deducted.

An individual under 60 years, who is non-resident in Trinidad & Tobago and is in receipt of emolument income arising in Trinidad & Tobago, is subject to tax under the PAYE system.

The total amount of income earned in Trinidad and Tobago is taxable whether or not it is received here.

Taxpayers are entitled to an annual Personal Allowance of TT$90,000.00 (effective January 1, 2023), plus 70% of NIS employees contributions and a taxpayers annuities approved by the BIR, up to a maximum of total pension contribution of TT$50,000 annually. Any annuity premiums above this amount are not tax deductible. This means that income tax is not payable on the first TT$90,000.00 of income; therefore, no income tax is due if earnings are less than this amount. The excess of the personal allowance, 70% NIS contribution and annuities approved by the BIR is taxed at a rate of 25% if the chargeable amount is less than TT$1 million annually. Effective January 1, 2017, chargeable income exceeding TT$1 million attracts a PAYE tax rate of 30%.

PAYE must be paid by the 15th of the following month. If the 15th falls on a weekend or holiday, then taxes are due on the first working day thereafter.

You can reduce the amount of tax to pay by declaring tax-deductible expenses. There are certain tax allowances and credits that may apply.

If taxes are not paid on time, then a penalty of 25% of the tax payable will apply and interest at a rate of 20% on the combined tax and penalty.

More information can be found here.

Health Surcharge

Health Surcharge is a tax, which is charged on employment.

The Health Surcharge is charged and payable:

• By every employed person who pays or who is liable to pay contributions under the National Insurance Act

• By individuals other than employed persons who are liable to furnish a return of income.

Those exempt from payment of the Health Surcharge are those:

• Under the age of 16

• 60 years and over

Health Surcharge is payable at two rates as follows:

• Where the weekly income is more than TT$ 109 the rate is TT$8.25

• Where the weekly income is less than TT$ 109 the rate is TT$4.80 per week

For employed persons, the employer must make this payment after deducting the correct amount from the salaries of their employees at each pay period. This amount is payable to the board on or before the 15th day of the month following the month in which the deduction was made. Health Surcharge is payable in cash or cheque and must be accompanied with the PAYE/Health Surcharge Monthly Return.

For individuals other than employed persons, the Health Surcharge shall be paid to the board on or before 31st March, 30th June 30th September and 31stDecember 

An employer who fails or neglects to deduct health surcharge and/or remit to the board is guilty of an offence. In addition to the amount not deducted and/or remitted is liable to a penalty of 25% of such amount and interest at the rate of 20% on both the outstanding amount and penalty from due date of payment.

Where a taxpayer (including an employee) has outstanding taxes and refuses or neglects to make payments to liquidate this arrears, the Board of Inland Revenue can enforce collection using various methods empowered by the Income Tax Act. One of these methods is the issuing of a Garnishee Order. A copy of the Garnishee Order is also sent to the taxpayer.

Section 112 of the Income Tax Act enables the board to instruct the employer via a Garnishe Order to deduct arrears of taxes from emolument of the delinquent employee for a specific period.

These arrears are deducted in addition to any tax which is due under the PAYE System.  A deduction under a Garnishee Order must be remitted to the Board of Inland Revenue at the end of the month in which the deduction was made.

This payment must not be included in the monthly PAYE deductions.  A separate PAYE Remittance Form must be used.

Social Security

For National Insurance purposes, earnings include more than the basic wage or salary. Earnings also include:

• Acting allowances

• Overtime payments

• Stipends

• Housing allowance

• Cost of living allowance

• Commission on sales

• Production or efficiency bonuses

• Danger or dirt money

• Payments for standby duty

• Allowances for dependents 

The payment of National Insurance contributions is compulsory for employees and unpaid apprentices who are registered or eligible to be registered under the system. Contributions are:

• Weekly payments fixed in relation to the wages/salaries of the insured person

• Structured into 16 earnings classes

With effect from January 5, 2026, contribution rates have been increased to 16.2% of insurable earnings. The income ceiling of TT$13,600 per month remains unchanged.

Payment of the contribution is shared between the employer and employee according to the rate set out in the act. The employer is statutorily obligated to deduct the employee's share no later than on the date of payment of salaries/wages.

Notwithstanding the cost sharing, the employer is responsible for remitting the total Contribution to the NIBTT.

Any employer who fails to pay contributions, or deducts part of the employer's contribution from the employee' s wages, or contravenes any other requirement of the law, commits an offence and is liable to be prosecuted and fined.

In addition, the employer is obligated to maintain pay records for each of his employees including the unpaid apprentice and domestic.  Contravention of this requirement attracts a fine of $500.00 and 3 months imprisonment upon summary conviction.

If an employer has an employee who is in insurable employment and that employee is required to work abroad, then contributions must be paid for the employee at the normal rates during the period that he/she is working abroad providing that:

• The employee is ordinarily resident in Trinidad and Tobago; and

• The employer maintains a place of business here

The following are instances in which no deductions are made from the employees’ wages/salaries and in which the employer only pays a contribution:

• Employees under 16 and over 65 years

• Employees aged 60 years to under 65 years who have retired, and have started to receive their Retirement Benefit and subsequently returned to work

Payments are due on the 15th of the month following the month for which salary/wages were paid. Where contributions remain unpaid after the 15th day of the following month, a 25% penalty will be applied from the 16th of the next month, followed by interest of 15% on the total amount outstanding from the following month.

More information regarding social security and the contribution rates can be found here.

Reporting

Monthly

Inland Revenue Department

• Return of the monthly PAYE and tax and Health Surcharge deductions. The forms contain details of the number of Employees with PAYE and Health Surcharge deductions, the deduction amount, penalty (if applicable), interest (if applicable) and the total remittance due.

• The documents must be submitted along with payment to the Cashiers and the Inland Revenue Department no later than the 15th of the month following the month for which the payment is applicable.

National Insurance Board

• The Statement of National Insurance Contributions Due/In Arrears (NI187). The form has Employer information, value of contributions payable, method of payment and details of payments which are in excess of one month.

• The documents must be submitted along with the payment to the Cashiers at any of the payment centers of the NIB by the 15th of the month following the month for which payment was applicable.

• The Statement of Contributions Paid / Due (NI184) must also be submitted, and it contains Employer Information, Contribution period, employees’ information such as NIS numbers, names, date of birth, earnings and contributions.

• The documents must be submitted along with the payments to the Cashiers at any of the payment centers of the NIB no later than the 15th of the following month for which the payment is applicable.

Yearly

Inland Revenue Department

• Annual return of Remuneration Paid, Income Tax and Health Surcharge Deducted and remitted. The documents include the name and address of the employer, the employees that paid income tax and health surcharge, emoluments earned for the year, remittances and deductions for the year.

• The documents must be submitted to the Inland Revenue Division along with two copies and the third copy of the employees’ TD4 forms no later than the last day of February of the year following the year to which the remittance relates.

• Return of Emoluments and PAYE deducted (TD4). This document contains employee information such as name, address, BIR Number, gross earnings, income tax deducted, health surcharge deducted and national insurance deducted.

• The documents should be submitted to the Inland Revenue Division along with three copies of the Annual Return of Remuneration Paid and Income Tax Health Surcharge deducted and remitted no later than the last day of February of the year following the year to which the remittance relates. 

Reports

Payroll reports should be kept for 10 years.

Payslip Example

Below is an example payslip for local employee:

New Employees

New employees must be registered with the National Insurance Board (NIB) if they were not previously registered. The employer needs to complete this registration within the first 7 days of employment.

Employees should make sure that they are also registered with the Board of Inland Revenue (BIR). There is no mandatory time period to apply for a BIR file number, but it is advised that the employee does the registration when they become an employee for the first time.

New employees should have the form TD1 from the Board of Inland Revenue at the beginning of employment.

The above applies to both expat and local employees.

Leavers

In Trinidad and Tobago, there are no legislative specifications regarding the time scale for an employee’s final payment.

A Termination Certificate must be submitted to the NIB. If the employee is being granted a severance (redundancy) payment then notification and approval has to be obtained from the BIR for the payment to be exempt from PAYE and NIS.

Employee Benefits

There are no specific, non-standard local benefits. Many companies will provide private health and pension plan contributions. Workmen’s compensation insurance is mandatory for the employer. Company cars are considered a fringe benefit by the tax authority and are taxable.
The provision of Sections 133-141 of the Income Tax Act state that where a company pays expenses on behalf of its directors/employees or grants allowances or benefits to any such director/employee, the amount paid or granted shall be treated as a perquisite (BIK) of the office/employment and included as income of the director/employee.

Visas & Work Permits

An entry visa is required for Trinidad and Tobago but there are many exemptions. The exemptions include:

• Citizens of Commonwealth countries with the exception of: Australia, New Zealand, Cameroon, Fiji, Nigeria, Papua New Guinea, Sri Lanka, Uganda, Guinea and Tanzania.

• Citizens of European Union Countries.

• Nationals whose countries have established visa abolition agreements with Trinidad and Tobago.

• Nationals of countries that have entered into reciprocal visa agreements with the Government of Trinidad & Tobago.

• Citizens of USA on vacation for three months or less.

• Nationals of the Republic of India who are visiting Trinidad and Tobago for vacation and business for a period of up to three (3) months.
  Nationals of the Russian Federation who are visiting Trinidad and Tobago for vacation and business are exempt from visa requirements for a period of up to three (3) months.

• Citizens of Venezuela arriving from Venezuela on vacation for fourteen (14) days or less. Holders of Venezuelan official and diplomatic passports accredited to Trinidad and Tobago are exempted from the visa requirements for the period of their assignment. Holders of Venezuelan official and diplomatic passports not accredited to Trinidad and Tobago on official missions are exempted from visa requirements of one month or less.

• Citizens of Suriname, Martinique, Guadeloupe, French Guiana and the Netherlands Antilles (Curacao, Aruba, Bonaire, St. Eustatius, St. Maarten and Saba).

• Holders of Organization of American States (OAS) passports. 

A foreign national wishing to work in Trinidad and Tobago must apply for a work permit through the Ministry of National Security. Each work permit is issued to a particular person for a specified period and for attachment to a particular company or institution, as described in the permit. Work permits are only issued to those who possess skills or expertise not available in Trinidad and Tobago.

You must apply for a work permit if you want to work in Trinidad and Tobago and you:

• Are not a citizen of Trinidad and Tobago.

• Are not a holder of a Certificate of Recognition of Caribbean Community Skills Qualification and certified to work within the Caribbean Community (CARICOM) region under the CARICOM Single Market and Economy (CSME).

• Want to enter the country for the purpose of work or work-related activities for a period of more than 30 days. You may enter the country for 30 days or less for work or work-related activities without a work permit once during any consecutive 12-month period.

You can submit a work permit application in person, or your application can be submitted on your behalf by:

• A company or institution based in Trinidad and Tobago that wishes to employ you.

• An appointed attorney in Trinidad and Tobago.

• An appointed company or institution based in Trinidad and Tobago acting on behalf of a foreign company.

You or your representative must complete the original and seven copies of the Work Permit application form. In addition, the following supporting documentation must be submitted with the application:

• Police certificate of character from the applicant’s country of residence.

• One copy of the applicant’s valid foreign passport.

Please note that there are two types of application forms:

• A single application form must be used if they are requesting an individual work permit or work permits for fewer than 10 persons.

• A group application form must be used if you are requesting work permits for 10 or more persons.

The Work Permits Advisory Committee of the Ministry of National Security will review your application and, if necessary, request any omitted or additional information. Once the application is complete and it is verified that the individual is eligible to receive a work permit, the Committee will forward the application to the Minister for approval.

Applicants will be notified of the final decision on your application within four to six weeks.

Further Information

For more information, or assistance with Trinidad and Tobago Tax enquiries please contact: gi@activpayroll.com 

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.