Wage Tax

When you receive your paycheck, you might notice a deduction for wage tax. Here’s a summary of what you need to know:

What is Wage Tax?

Wage tax is the amount deducted from your employment income by your employer before you receive your paycheck. It’s regulated by the Wage Tax Act, and the employer is typically responsible for withholding and submitting this tax to the authorities.

Who Withholds Wage Tax?

According to the Wage Tax Act, employers are obligated to withhold wage tax. For individuals with only one employer-employee relationship and no other sources of income, wage tax is the final tax. Otherwise, it serves as an advance levy on income tax.

Filing and Payment

Employers must file the wage tax return by the seventh working day of the month following the pay period. The tax payment is due on the same day as the submission of the return.

Non-compliance Consequences

Failure to comply with wage taxes and payment obligations can result in additional tax assessments. The fines for non-compliance range from 10% to 100% of the taxes owed.

What Counts as Wages?

Wages, as defined by the law, include all benefits derived from an employer-employee relationship or a former employer-employee relationship. Benefits in kind are also considered as income from employment. However, certain entitlements and benefits are exempt from taxation.

Exclusions from Wages

Wages do not include specific allowances and benefits:

• allowances, if the employer can provide evidence that and to what extent these are relevant and necessary costs, which ensue directly from the fulfillment of an employer-employee relations­hip.
• Claims based on a pension scheme
• Claims under the Surinamese Accident Regulation
• Cash benefits and benefits in kind pursuant to a claim that is part of the wages
• Amounts, which are withheld on the basis of obligatory con­tributions in pursuance of a pension scheme
• The value of the transportation for the employee to travel from his home or residence to his place of employ­ment, in so far as the transportation takes place by or in order of the employer
• Child allowances:
  • January 2021 up to and including June 2021:
    • up to an amount of SRD 75 per child per month with a maximum of SRD 300 (4 children) per month
  • From July 2021:
    • up to an amount of SRD 125 per child per month with a maximum of SRD 500 (4 children) per month
• Holiday allowances up to, per year, the amount of the wages for a month with a maximum of:
  • SRD 10,016 for the year 2023
  • SRD 6,516 for the year 2022
  • SRD 4,000 for the year 2021
• Gratuities and bonuses to an amount not exceeding a monthly wage, with a maximum of:
  • SRD 10,016 for the year 2023
  • SRD 6,516 for the year 2022
  • SRD 4,000 for the year 2021
• Claims to benefits due to demise or disability resulting from an accident
• Claims to periodic benefits to replace lost wages
• Cash benefits and benefits in kind to cover the costs of the employee regarding childbirth, illness and disability
• Cash benefits and benefits in kind with regard to demise
• Benefits in kind in the form of training courses provided by the employer to the employee
• Cash benefits and benefits in kind for compensation of the employee, who in connection with his employment, has suffered damage to or loss of his goods
• Claims to anniversary benefits
• A pension payment twice the AOV amount per year for the year 2023:
  • From July 2023:
    • SRD 1,750 times 2 equals SRD 3,500 per month
  • January 2023 up to and including June 2023
    • SRD 1,250 times 2 equals SRD 2,500 per month
• A pension payment twice the AOV amount per year for the year 2022:
  • March 2022 up to and including December 2022:
    • SRD 1,250 times 2 equals SRD 2,500 per month
  • January 2022 and February 2022
    • SRD 1,000 times 2 equals SRD 2,000 per month
• A pension payment twice the AOV amount per year for the year 2021:
  • July 2021 up to and Including December 2021 :
    • SRD 1,000 times 2 equals SRD 2,000 per month
  • January 2021 up to and including June 2021
    • SRD 750 times 2 equals SRD 1,500 per month
• Exchange Rate compensation for the year 2022 and 2023
  • up to an amount of SRD 800 per month.
• Exchange Rate compensation for the year 2021
  • up to an amount of SRD 100 per month up to and including August 31, 2021.
  • with a maximum of SRD 800 per month from September 1, 2021. The (extra) exemption may not be used to pay out the existing taxable wages tax-free. In order to apply the exemption, the employer will therefore have to provide the employee with an exchange rate compensation. Providing an exchange rate compensation is a choice of the employer. If the employer has increased the taxable wage before September 1, 2021, the employer can allocate the increase to the exchange rate compensation after approval from the tax authorities.
• Anniversary benefits (with different maximums)

Pursuant to the Wage Tax Act, the benefits in kind mentioned hereinafter are assessed as follows:

Deductible Costs

According to the Wage Tax Act, the net wage (= wage minus allowable deductions) is taxable. Deductible costs are set at 4% of wages:

• as of January 1, 2024: with a maximum of SRD 4,800 per year
• up to and including December 31, 2023: with a maximum of SRD 1,200 per year

Rates in the Wage Tax Act for the year 2024:

Tax free sum per year up to and including December 31, 2024: SRD 108,000

Tax free sum per month up to and including December 31, 2024: SRD 9,000

Table 1 Normal rate per year up to and including December 31, 2024

Table 2 Normal rate per month up to and including December 31, 2024

Table 3 Lump sum benefits up to and including December 31, 2024      

Table 4 Overtime per month up to and including December 31, 2024

Rates in the Wage Tax Act for the year 2023:

Tax free sum per year up to and including December 31, 2023: SRD 90,000

Tax free sum per month up to and including December 31, 2023: SRD 7,500

Table 1 Normal rate per year up to and including December 31, 2023

Table 2 Normal rate per month up to and including December 31, 2023

Table 3 Lump sum benefits up to and including December 31, 2023      

Table 4 Overtime per month up to and including December 31, 2023

Rates in the Wage Tax Act for the year 2022:

Tax free sum per year up to and including December 31, 2022 : SRD 48,000

Tax free sum per month up to and including December 31, 2022 : SRD 4,000

Table 1 Normal rate per year up to and including December 31, 2022

Table 2 Normal rate per month up to and including December 31, 2022

Table 3 Lump sum benefits up to and including December 31, 2022      

Table 4 Overtime per month up to and including December 31, 2022

Rates in the Wage Tax Act for the year 2021:

Tax free sum per year: SRD 2,646

Tax free sum per month: SRD 220.50

Table 1 Normal rate per year up to and including January 31, 2021

Table 2 Normal rate per year from February 1, 2021 up to and including December 31, 2021

Table 3 Normal rate per month up to and including January 31, 2021

Table 4 Normal rate per month from February 1, 2021 up to and including December 31, 2021

Table 5 Lump sum benefits up to and including January 31, 2021      

Table 6 Lump sum benefits from February 1, 2020 up to and including December 31, 2021      

Table 7 Overtime per month up to and including December 31, 2021