The National Assembly has approved an amendment to the Employment Act making the 13th month salary compulsory for qualifying workers in both the public and private sectors. To support small businesses in the private sector, the government will allocate five million rupees to assist employers in meeting the cost of the compulsory payment.
The 2025 amendment was presented by the Minister for Employment and Human Resource Planning, Idith Alexander, on Tuesday, 9 December. She said the change formed part of the government’s 100-day social contract pledged during the election campaign. Under the revised law, the previous system linking part of the 13th month salary to performance has been removed.
Previously, 50% of the payment was guaranteed, while the remaining 50% depended on performance evaluations. Minister Alexander said the benefit would apply only to Seychellois workers. It will not apply to foreign workers, trainees on skills development contracts, or employees earning more than 45,450 Seychelles rupees per month. Payments will be made on a pro rata basis, depending on the number of months worked during the year. Minister Alexander also confirmed that the 13th month salary will be tax-exempt.
The amendment divided the Assembly. The Leader of the Opposition, Bernard Georges, said the basis of the amendment was not well founded. He argued that the 13th month salary is not a constitutional right under Article 35 of the Constitution. He also raised concerns about potential impacts on productivity, saying the benefit would no longer be linked to performance.
Responding, the Leader of Government Business Sylvanne Lemiel described the amendment as a matter of justice rather than generosity. She said the previous system, which made the benefit non-compulsory, allowed for subjective decisions by employers and inconsistent appraisal systems. She added that workers’ rights had, at times, become a tool for negotiation. She also urged workers to continue giving their best in the workplace.
Following debate, Speaker Ernesta certified that 18 members voted in favour of the bill, while 14 members abstained. The amendment was therefore approved.
Employers have until 31 January to make payments for the 13th month salary.