An “employee” is any person who, in respect of employment, receives remuneration from an employer, and includes any person to whom remuneration accrues:

  • as a director of a company;
  • from a former employer or trustee of a pension fund, as a consequence of a former employment; or  
  • as a dependent of a deceased person where such remuneration accrued to that dependent as a consequence of the former employment of the deceased.


A “contractor” is anyone who provides or supplies independent personal services in exchange for compensation. A contractor is not considered an employee and is also not any of the following:

  • accountants, auditors or tax consultants
  • business or management consultants
  • lawyers
  • doctors, dentists, pharmacists or nurses
  • engineers
  • funeral undertaking services


An employee typically performs duties dictated or controlled by company superiors (managers and supervisors) and, in many cases, an employee is provided training to do the job.


An independent contractor, however, generally has several clients. A contractor also has his or her own tools and sets his or her own hours. Furthermore, a contractor invoices for the completed work while an employee receives a periodic wage or salary.


In St. Lucia, a contractor is taxed based on one fixed rate, which is 10% of gross earnings, an employee is taxed based on a tax code, which is determined by a declaration of deductions and allowances.

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Ⓒ2013 Inland Revenue Department, Government of Saint Lucia.