How to Use An Employer of Record in
Seychelles

Hiring in Seychelles requires navigating the Employment Act 1995, which mandates employer contributions of 20% to the Seychelles Pension Fund and strict compliance with collective bargaining agreements that set minimum wages by sector. An Employer of Record in Seychelles lets you hire compliantly without establishing a local entity, handling all statutory filings, payroll, and employment contracts under local law. This removes the risk of penalties from the Seychelles Revenue Commission for late tax filings and eliminates the administrative burden of registering with multiple government bodies before your employee's first day.

What Is an Employer of Record in Seychelles?

An Employer of Record in Seychelles is a third-party organisation that becomes the legal employer of your staff under Seychelles law, handling all statutory obligations, payroll, and compliance while you retain full operational control. The EOR signs the employment contract, registers employees with the Seychelles Revenue Commission and Social Security Fund, withholds income tax, remits employer and employee contributions, and manages termination procedures. You direct the employee's daily work, set performance goals, and determine compensation, but the EOR owns the legal employment relationship.

Under the Employment Act 1995, all employment contracts must include specific mandatory clauses covering notice periods, probation terms, working hours, and leave entitlements. Collective agreements negotiated by the Seychelles Federation of Workers' Unions often supersede statutory minimums, setting higher wages, additional leave days, or sector-specific benefits that apply to all employees in designated industries. The EOR ensures every contract complies with both the Employment Act and any applicable collective agreement, adjusts payroll when minimum wages change, and files all employment-related returns with the Seychelles Revenue Commission by statutory deadlines.

You retain complete control over the employee's role, responsibilities, performance management, and day-to-day tasks. The EOR owns the employment contract, manages payroll processing in Seychelles Rupees, submits monthly tax and social security filings to the Seychelles Revenue Commission and Social Security Fund, maintains statutory leave records, and executes termination procedures including notice, severance calculations, and final settlement documentation.

How Does an Employer of Record Work in Seychelles?

When you engage an Employer of Record in Seychelles, the EOR becomes the legal employer while you retain full control over the employee's work. The process involves contract preparation, government registration, payroll setup, and ongoing compliance management under the Employment Act 1995. Each step follows specific legal requirements enforced by the Seychelles Revenue Commission, the Social Security Fund, and the Employment Division of the Ministry of Employment and Social Affairs.

Step 1: Define Role and Employment Terms

You provide the EOR with the job description, proposed salary, benefits, and start date for your new hire. The EOR reviews whether the role falls under a collective agreement, which may set a higher minimum wage or additional benefits than the statutory floor. If the position is covered by a collective agreement negotiated by the Seychelles Federation of Workers' Unions, the EOR ensures the offer meets or exceeds those sector-specific terms. The EOR confirms the employment terms comply with both the Employment Act 1995 and any applicable collective agreement before drafting the contract.

Step 2: EOR Compliance Check

The EOR verifies that the proposed salary meets the statutory minimum wage set by the Minister of Employment under the Employment Act 1995, which as of 2026 is SCR 5,200 per month for most sectors. The EOR confirms working hours do not exceed 45 hours per week or 9 hours per day as mandated by the Employment Act. The EOR checks employee classification to ensure the role is correctly categorized as employee status rather than contractor status, which affects statutory contributions and termination rights. This compliance check prevents future disputes with the Employment Division and ensures accurate social security registration.

Step 3: Employment Contract

The EOR prepares a written employment contract in English, as required by the Employment Act 1995, which must be provided to the employee before or on the first day of work. Mandatory clauses include the employee's job title and duties, the rate and method of remuneration, working hours and location, probation period not exceeding six months, notice periods for termination, annual leave entitlement of 21 working days minimum, and any applicable collective agreement terms. The contract is governed by the Employment Act 1995 and must reference the relevant collective agreement if one applies to the sector. For fixed-term contracts, the EOR includes the contract end date and renewal terms, and ensures the duration does not circumvent permanent employment protections under Seychelles law.

Step 4: Government Registrations

The EOR registers the employee with the Seychelles Revenue Commission to obtain a Tax Identification Number (TIN) if the employee does not already have one, and notifies the Revenue Commission of the new employment relationship. The EOR registers the employee with the Seychelles Social Security Fund, which must be completed within 14 days of the employment start date as required by the Social Security Act. The EOR also notifies the Employment Division of the Ministry of Employment and Social Affairs by submitting employment particulars. Late registration with the Social Security Fund incurs penalties of up to SCR 5,000 and daily fines until the employee is registered, and the employer remains liable for all contributions from the original start date.

Step 5: Payroll in Local Currency

The EOR processes payroll in Seychelles Rupees (SCR) on a monthly cycle, as is standard practice in Seychelles. The EOR calculates and withholds income tax under the Business Tax Act at progressive rates ranging from 0% on the first SCR 10,000 of annual income to 30% on income above SCR 500,000, and remits monthly payments to the Seychelles Revenue Commission by the 15th of the following month. The EOR deducts the employee's 5% Social Security Fund contribution and remits it alongside the employer's 20% contribution to the Social Security Fund by the statutory deadline. The EOR issues a payslip to the employee showing gross salary, all deductions, and net pay, and maintains payroll records for the seven-year statutory retention period.

Step 6: Ongoing Compliance

The EOR submits monthly income tax withholding returns to the Seychelles Revenue Commission by the 15th of each month, declaring all salaries and tax withheld. The EOR files monthly social security contribution returns with the Seychelles Social Security Fund and remits both employer and employee contributions by the statutory deadline. The EOR maintains statutory leave records, tracking annual leave accrual, sick leave entitlement of 14 days per year, and maternity leave of 14 weeks as mandated by the Employment Act. The EOR monitors changes to collective agreements and adjusts payroll when sector minimum wages increase or new benefits are negotiated. The EOR submits annual employment summaries to the Seychelles Revenue Commission and responds to any compliance audits from the Employment Division or Social Security Fund.

Step 7: Termination

The EOR manages termination under the Employment Act 1995, which requires just cause for dismissal and mandates specific procedural steps including written notice and opportunity to respond. Notice periods are typically one month for employees with more than one year of service, though collective agreements may require longer notice periods for certain sectors or seniority levels. The EOR calculates severance pay, which is due for employees with at least five years of continuous service and is calculated as one month's salary for each year of service up to a statutory maximum. The EOR issues the final settlement including outstanding salary, accrued but unused annual leave, notice pay if applicable, and any severance entitlement, and files the termination notice with the Employment Division and updates the Social Security Fund and Seychelles Revenue Commission.

Employment Laws and Compliance an Employer of Record Handles in Seychelles

When you hire through an Employer of Record in Seychelles, the EOR assumes full responsibility for compliance with the Employment Act 1995, the Social Security Act, the Business Tax Act, and all applicable collective agreements. This removes the need to build an in-country HR function or maintain legal expertise in Seychelles employment law.

• Employment Contracts: The EOR prepares written contracts in English as required by the Employment Act 1995, including all mandatory clauses covering job duties, remuneration, working hours, notice periods, and leave entitlements. The contract must be provided to the employee on or before the first day of work, and failure to do so can result in penalties from the Employment Division and expose your company to wrongful termination claims. The EOR ensures contracts reference any applicable collective agreement and comply with sector-specific terms negotiated by the Seychelles Federation of Workers' Unions.
• Income Tax Withholding: The EOR calculates and withholds income tax under the Business Tax Act at progressive rates from 0% to 30% based on annual income bands, and remits monthly payments to the Seychelles Revenue Commission by the 15th of the following month. The EOR files monthly withholding returns and issues annual income statements to employees by January 31. Late remittance incurs penalties of 5% of the tax due plus interest at 1.5% per month, and the Seychelles Revenue Commission can pursue the employer for unpaid amounts plus penalties.
• Social Security Contributions: The EOR registers employees with the Seychelles Social Security Fund within 14 days of employment start and remits monthly contributions at a combined rate of 25% of gross salary, split 20% employer and 5% employee. The EOR submits monthly returns and remits contributions by the statutory deadline, which is typically the 15th of the following month. Late payment incurs penalties of up to SCR 5,000 plus daily fines, and failure to register employees can result in prosecution and employer liability for all backdated contributions from the original start date.
• Statutory Leave: The EOR manages annual leave entitlement of 21 working days per year as mandated by the Employment Act 1995, accrued monthly at 1.75 days per month, and calculates leave pay at the employee's normal rate. The EOR tracks sick leave entitlement of 14 days per year on full pay, maternity leave of 14 weeks at full pay funded by the employer for the first six weeks and the Social Security Fund for the remaining eight weeks, and paternity leave of four days. Failure to grant statutory leave or pay leave entitlements can result in compensation orders from the Employment Tribunal and penalties from the Employment Division.
• Termination and Severance: The EOR executes terminations under the Employment Act 1995, which requires just cause and mandates procedural fairness including written notice of allegations and opportunity to respond. The EOR provides statutory notice of one month for employees with more than one year of service, calculates severance pay for employees with five or more years of service at one month's salary per year of service, and issues final settlement including accrued leave. Failure to follow statutory termination procedures exposes your company to wrongful dismissal claims before the Employment Tribunal, which can award up to 12 months' salary in compensation plus reinstatement.
• Working Time Limits: The EOR ensures working hours do not exceed 45 hours per week or 9 hours per day as mandated by the Employment Act 1995, calculates overtime pay at 1.5 times the normal hourly rate for hours beyond 45 per week, and maintains time records for inspection by the Employment Division. The EOR ensures employees receive the statutory daily rest period of 11 consecutive hours and one rest day per week. Non-compliance with working time limits can result in fines of up to SCR 10,000 per violation and compensation claims from employees for unpaid overtime.
• Health and Safety: The EOR ensures compliance with the Occupational Safety and Health Act 2014, which requires employers to provide a safe working environment, conduct risk assessments, and report workplace injuries to the Department of Employment within seven days. The EOR maintains employer's liability insurance as required by law and coordinates with the Social Security Fund on workplace injury claims. Failure to comply with health and safety obligations can result in fines of up to SCR 50,000 and prosecution for serious breaches causing injury.
• Employee Data Protection: The EOR processes employee personal data in compliance with the Data Protection Act 2023, which requires lawful basis for processing, employee consent for sensitive data, secure storage, and the right for employees to access their data. The EOR implements data protection policies, registers as a data controller with the Seychelles Data Protection Commissioner, and notifies the Commissioner of any data breaches within 72 hours. Non-compliance can result in fines of up to SCR 500,000 or 2% of global annual turnover, whichever is higher, and compensation claims from affected employees.
• Collective Agreements: The EOR monitors collective agreements negotiated by the Seychelles Federation of Workers' Unions, which set sector-specific minimum wages, additional leave days, overtime rates, and other benefits that supersede statutory minimums. The EOR adjusts payroll when collective agreements are updated and ensures all employees in covered sectors receive the agreed terms. Failure to comply with applicable collective agreements can result in complaints to the Employment Division, back pay orders, and penalties for underpayment of wages or benefits.
• Foreign Worker Permits: The EOR sponsors Gainful Occupation Permits (GOP) for foreign employees, applying through the Department of Immigration under the Immigration Decree 1981 with supporting documentation including the employment contract, proof of qualifications, and evidence that no qualified Seychellois candidate is available. The GOP application takes 4 to 8 weeks to process and costs approximately SCR 10,000 annually depending on occupation and salary level. The EOR ensures GOP renewal before expiry and notifies the Department of Immigration of any changes to employment terms, as working without a valid GOP can result in deportation, fines of up to SCR 100,000, and prosecution of the employer.

How Much Does It Cost to Use an Employer of Record in Seychelles?

The total cost of hiring through an Employer of Record in Seychelles has two components: statutory on-costs mandated by Seychelles law and the EOR service fee. Statutory costs are fixed by the Employment Act 1995, the Social Security Act, and applicable collective agreements, and include employer contributions to the Seychelles Social Security Fund, which are calculated as a percentage of gross salary. Playroll's Employer of Record service fee starts from $399 per employee per month and is billed separately from statutory costs and employee salary.

Let's look at an example that includes a base salary and the EOR service fee.

The Employer of Record service fee covers preparation of compliant employment contracts under the Employment Act 1995, registration with the Seychelles Revenue Commission and Social Security Fund, monthly payroll processing in Seychelles Rupees, calculation and remittance of income tax and social security contributions, statutory leave tracking and payments, ongoing compliance monitoring including changes to collective agreements, and management of termination procedures including notice and severance calculations.

Employer of Record vs Setting Up an Entity in Seychelles

The choice between using an Employer of Record and establishing your own legal entity in Seychelles depends on your hiring volume, timeline, and long-term commitment to the market. Foreign companies typically incorporate an International Business Company (IBC) under the International Business Companies Act 2016, which requires registration with the Seychelles Financial Services Authority, a local registered agent, and minimum share capital of USD 1. Realistic incorporation takes 8 to 12 weeks and costs between $5,000 and $10,000 including legal fees, registered agent fees, and initial compliance setup.

For companies hiring fewer than 10 employees in Seychelles, an Employer of Record is almost always the faster and more cost-effective route.

Playroll also supports your long-term growth through its Global Entity Setup product, which handles entity incorporation and local payroll in 120+ countries, so you can transition from EOR to your own compliant entity in Seychelles when the time is right, without switching providers or rebuilding your HR processes.

How Long Does It Take to Hire Someone in Seychelles Through an Employer of Record?

Hiring through an Employer of Record in Seychelles typically takes 10 to 15 business days from accepting the offer to the employee's first working day.

• Stage 1: Contract preparation and signing (2 to 3 business days): The EOR drafts a compliant employment contract under the Employment Act 1995 including all mandatory clauses, ensures alignment with any applicable collective agreement, and sends the contract to the employee for signature. Timing depends on how quickly the employee reviews and returns the signed contract, and whether any negotiation on terms is required.
• Stage 2: Government registrations (3 to 5 business days): The EOR registers the employee with the Seychelles Social Security Fund, which must be completed within 14 days of the employment start date as required by the Social Security Act, and notifies the Seychelles Revenue Commission of the new employment relationship to establish income tax withholding. Missing the pre-start Social Security Fund registration can result in penalties of up to SCR 5,000 and daily fines until registration is completed, and the employer remains liable for contributions backdated to the start date.
• Stage 3: Payroll configuration and first cycle (3 to 5 business days): The EOR configures the employee in the payroll system, sets up the salary structure including any allowances or benefits, and schedules the first monthly payroll cycle. Payroll in Seychelles is processed monthly, and the first payslip is issued at the end of the first month of employment, covering the prorated period from the start date.
• Stage 4: Seychelles-specific requirements (1 to 2 business days): If the employee is a foreign national, the EOR sponsors a Gainful Occupation Permit (GOP) application with the Department of Immigration, which takes 4 to 8 weeks to process but can often run in parallel with other onboarding steps if applied before the intended start date. The GOP application requires supporting documentation including the employment contract, proof of qualifications, and evidence of labour market testing to demonstrate no qualified Seychellois candidate is available.

The timeline can extend if the employee requires a Gainful Occupation Permit and the application has not been initiated before the intended start date, or if the role is subject to a collective agreement requiring consultation with the Seychelles Federation of Workers' Unions or approval from the Employment Division. Delays in obtaining signed contracts or providing complete employee documentation for government registration can also add time.

In contrast, incorporating an International Business Company in Seychelles and setting up compliant payroll takes 8 to 12 weeks, and you still face a further 2 to 3 weeks to hire your first employee after entity setup.

How Playroll's Employer of Record Process Works in Seychelles

Hiring in Seychelles through Playroll is built around speed, compliance, and transparency from day one.

1. You define the role and terms

You tell us who you want to hire, the proposed salary, benefits, start date, and any specific terms. We confirm whether the role falls under a collective agreement that may set a higher minimum wage or additional benefits, and flag any compliance considerations under the Employment Act 1995.

2. We prepare a compliant contract

Playroll drafts an employment contract in English that includes all mandatory clauses required by the Employment Act, such as job duties, remuneration, working hours, notice periods, and leave entitlements. If the role is covered by a collective agreement negotiated by the Seychelles Federation of Workers' Unions, we ensure the contract meets or exceeds those sector-specific terms.

3. Employee onboarded and payroll goes live

Once the contract is signed, we onboard your employee within 10 to 15 business days, register them with the Seychelles Social Security Fund and Seychelles Revenue Commission, and configure their first monthly payroll cycle. We handle all government notifications and ensure your employee receives their first payslip on schedule.

4. We manage ongoing compliance

Playroll monitors changes to the Employment Act, collective agreements, and tax regulations, files all monthly returns with the Seychelles Revenue Commission and Social Security Fund, and manages leave tracking, termination procedures, and any compliance audits. If your hiring in Seychelles grows to where a local entity makes sense, Playroll can handle that too through our global entity setup service, so you can transition without switching providers or rebuilding your payroll infrastructure.