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Hidden Gems: Hiring Remote Workers in Belize

July 17, 2024

From the stunning Barrier Reef Reserve System, the second largest in the world, to the ancient Mayan ruins scattered throughout the lush jungles, Belize is a country of natural and historical splendor.

In addition to its pristine beaches and vibrant marine life, Belize is the only country in Central America where English is the primary language. The cost of living is also relatively low, which translates to competitive salary expectations for remote employees.

In this article, we’ll cover the benefits of adding Belizeans to your global team. We’ll also examine the country’s well-educated workforce, competitive cost of living, and business regulations.

Advantages of Hiring in Belize

The education system in Belize is robust, with approximately 85.43% of the total working-age population obtaining short-cycle tertiary education, bachelor’s degrees, master’s degrees, or doctoral degrees.

American employers can also benefit from minimal time zone differences. Belize’s location in the Central Standard Time (GMT-6) zone allows for significant overlap with most time zones in North, South, and Central America.

Let’s take a look at some key stats about Belize:

  • Languages: English, Spanish, Kriol
  • Currency: Belize Dollar (BZD)
  • Capital City: Belmopan
  • Population: 416,790
  • Cost of Living Rank: 47th

A Diverse Country Set on Economic Transformation

Belize is a small, diverse country that has evolved from a primarily agricultural and mining-based economy to one with a growing focus on service-led sectors.

While traditional primary activities such as sugar, banana, and citrus production remain important, Belize has seen increased foreign investment and a shift towards manufacturing and tourism.

The Government of Belize has launched the Belize Investment and Business Climate Action Plan (BIBCAP) to help drive this economic transformation. Built on nine key policy pillars, BIBCAP seeks to facilitate domestic and foreign investments, promote innovation, and enhance Belize’s overall regional competitiveness.

Belize is also investing in the future through education. Itz'at STEAM Academy, launched in 2023, is a secondary school for students between the ages of 13 and 16 that emphasizes a curriculum focused on science, technology, engineering, arts, and mathematics (STEAM).

The school is the result of a three-year collaboration between MIT and the Ministry of Education, Culture, Science, and Technology of Belize. The goal of the school is to educate and prepare students for careers in STEAM industries and encourage investment in these sectors.

Common job sectors for hiring a remote team of cost-effective Belizean talent include:

  • Financial analyst
  • Payroll administration
  • Operations administration
  • Fleet management and logistics
  • Administrative assistant
  • Customer service

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Hiring Compliantly in Belize

Employment Contracts

Belize offers two primary types of employment contracts: indefinite contracts (with no predetermined end date) and fixed-term contracts (with a set end date specified).

While indefinite contracts don't legally require a written agreement, it’s recommended that employers create one anyway to help prevent potential issues down the line. Fixed-term contracts, on the other hand, do mandate a written agreement.

Contracts should include essential clauses such as:

  • Identification of parties
  • Type of agreement and start date
  • Job title and responsibilities
  • Compensation and benefits
  • Working hours and schedule
  • Probationary period
  • Termination notice
  • Confidentiality clause

Working Hours & Pay

According to the Labour Act (Chapter 297), the standard workweek is 45 hours, with a maximum of nine hours per day. Overtime work, including work performed on Sundays or public holidays, is compensated at one and a half times the regular pay rate.

The Act also mandates rest periods, with workers entitled to at least one rest day per week and a break of at least one hour for work days exceeding six hours.

Night shift workers (those who work between 8 p.m. and 6 a.m.) do not receive higher base pay, but any overtime during these hours is still compensated at one and a half times the regular pay rate.

Probation Periods

The Belize Labour Act establishes a two-week probationary period for oral employment contracts. During this time, the employer or the employee can terminate the relationship without notice.

Written employment agreements offer more flexibility. However, excessively long probationary periods could be contested, as employment continuity is a key consideration. Typically, probationary periods last three months.

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Employer Taxes

In Belize, employers contribute 8.13% of an employee’s gross salary to the Social Security Board (SSB), capped at BZD 720 monthly. Employees contribute 8% of their gross wages to the SSB, up to the same monthly maximum.

Termination Process & Severance Pay

Termination requires written notice. The employee’s length of employment determines the amount of notice required:

  • 2 weeks to 6 months: 1 week notice
  • 6 months to 2 years: 2 weeks’ notice
  • 2 years to 5 years: 4 weeks’ notice
  • 5+ years: 8 weeks’ notice

However, employers can dismiss employees immediately for serious misconduct, such as gross negligence or lack of skills. Constructive dismissal occurs when an employee resigns due to an intolerable work environment.

For employees with more than one month of service, the termination process involves a written letter, final paycheck, and termination certificate.

Severance pay is owed to employees with at least one year of continuous employment unless terminated for retirement, resignation without notice, or serious breach. Severance is two weeks’ wages per year of service and is paid at termination.

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Paid Leave Laws in Belize

Vacation and Holiday

Employees are entitled to 14 days of paid annual leave after one year of continuous service. Employers can also carry over unused leave, although accrual may be limited. Employees with less than a year of service receive proportionate leave.

Belize also celebrates around 13 public holidays, plus two religious holidays (Easter and Good Friday).

Sick Leave

Employees are entitled to 16 days of paid sick leave, but an important caveat is that they must have worked at the company for at least 60 days before being entitled to this benefit. Employees will also need to provide proof of their illness from a medical professional.

While employers cover the first three days of sick leave, the country’s social security system pays for the remaining 13 days.

However, if the social security payment doesn’t fully cover the regular wages, the employer is responsible for making up the difference.

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Parental Leave

In Belize, pregnant employees who have worked at a company for at least 150 days receive 14 weeks of paid maternity leave. The first seven weeks must be taken before the due date, and the remaining seven are taken after the birth.

The maternity leave pay is calculated at 80% of the employee’s regular salary, with a minimum of 44 BZD and a maximum of 384 BZD per week. There is no statutory paternity leave for fathers.

Why Digital Nomads Love Belize

Thanks to its blend of natural beauty and practical amenities, Belize has quickly become a favorite among digital nomads, freelancers, and contractors. The country offers visitors the flexibility to stay for up to 30 days.

Visitors can then apply for extensions at the local immigration office for a fee, allowing stays of up to six months.

Belize’s “Work Where You Vacation” Visa is convenient for those planning a longer stay. It permits a stay of up to 180 days for around $250. Coupled with a relatively low cost of living, Belize offers an idyllic and practical setting for remote work, making it an attractive option for companies seeking freelance talent.

Hire in Belize with Remofirst

Navigating the complexities of international labor laws and payroll management can be daunting when it comes to global hiring. An Employer of Record (EOR) like Remofirst can simplify the process for companies seeking to recruit and employ top talent globally.

With Remofirst, you can tap into a global talent pool, hiring employees from over 180 countries, including Belize. Book a demo to discover how Remofirst can facilitate your remote hiring, guarantee compliance with labor regulations, and simplify the onboarding process for your global workforce.

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