How to Hire Remote Employees In 

Seychelles

The Basics

Currency
Seychelles Rupee (SCR)
Employer Taxes
22%
Payroll Frequency
Monthly
Official Language
Creole/English/French

Employment in 

Seychelles

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Seychelles

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Seychelles can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Seychelles, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Seychelles.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Seychelles is not the same as paying workers in your own country. Employees have to be paid using Seychelles ’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Seychelles

 Specific Information

Working Hours

The standard work week may not exceed 60 hours or 12 hours per day.

Overtime

Overtime is allowed of up to 60 hours per month, or 15 extra hours per week. 

Payroll Tax

Employer

Employer

  • Social security
  • Pension fund


Minimum Wage

The minimum wage rate is SR26. 70 per hour for all workers other than casual workers

Payroll

Pay Cycle

Employees in Seychelles is paid in monthly basis

13th Salary

 The 13th month pay is equal to the basic salary and therefore does not include allowances, service charge or any other benefits.

Leave

Paid Time Off (PTO)

All employees are generally entitled to 21 days of paid annual leave, or 1.75 days per month worked.

Public Holidays

There are 12 public holidays.

Sick Days

Employees are entitled to 30 days of paid sick leave per year, or in cases of hospitalization, 60 days.

Maternity Leave

Female employees are generally entitled to 14 weeks of paid maternity leave.

Female employees  receive an additional four weeks of unpaid leave that can be taken either before or after birth.

Employees must provide three months' notice to employers of the expected due date.

Paternity Leave

A male employee under a contract of continuous employment or for a fixed term or a part-time male worker, is entitled to paid paternity leave of 10 consecutive working days.

Parental Leave

No Info.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

An employment contract can be terminated by an employer with notice following disciplinary procedures.

The employee must be informed in writing if it is a serious offense and given the opportunity to respond.

An employer and employee can terminate an employee contract with notice in the following cases:

  • During the probation period if the employee’s performance is unsatisfactory
  • During the training period if the trainee does not successfully complete the training
  • Pursuant to a change in employment terms to which the employee does not consent
  • Change of ownership of the business
  • Casual or part-time work

Notice Period

The notice period in Seychelles is:

  • One day in the case of a casual worker
  • Seven days for an employee on probation
  • One month for all other workers, other than non-Seychelles employees
  • One month or the notice period specified in the contract for a non-Seychelles employee

Employers are required to give notice of termination to employees who are under fixed-term contracts, as well as to employees who are reaching the legal age of retirement.

This notice period must be at least one month.

Severance Pay

Employers are responsible for compensation and wages upon termination, except in cases where an employee is dismissed for disciplinary reasons.

Employees are also entitled to compensation upon resignation (other than while on suspension or following disciplinary proceedings) or upon retirement after at least five years of service.

Probation Period

Probation period is 7 days for employee. One month for all other workers, other than non-Seychelles employees.