The government of Seychelles has confirmed that the 13th month pay will remain fully mandatory from December 2025.
The update follows amendments to the Employment Act passed by the National Assembly on 9 December. The changes apply to 2025 and future years.
According to the Ministry of Employment and Human Resource Planning, the performance-based deduction system introduced between 2022 and 2024 has been removed. As a result, payments will no longer depend on employee appraisals.
Instead, the scheme returns to the model used between 2016 and 2019. Under this system, the 13th month pay is 100% mandatory.
Payment dates remain unchanged
The ministry said the payment deadline remains the same. Employers must pay workers by 31 January each year. The entitlement becomes due on 31 December.
Workers who do not receive their payment for 2025 by 31 January 2026 may lodge a complaint with the ministry.
Who qualifies for the payment
The 13th month pay applies only to Seychellois workers. Non-Seychellois employees do not qualify. The same applies to trainees on Skills Development contracts.
Workers earning more than SCR 45,450 are also excluded. However, if an employer pays the benefit voluntarily, tax will apply to the amount above that threshold.
Pro-rata payments explained
Workers who start employment after January may still qualify. They must be employed on 31 December and must have completed probation. In such cases, payment is made on a pro-rata basis.
Workers who leave employment during the year may also receive a proportion of the payment. This applies to departures that are not disciplinary. It also excludes cases where probation was not completed.
From 16 December 2025, the pro-rata calculation will apply to the full amount.
However, workers dismissed for disciplinary reasons, or those still on probation, will not benefit.
Deductions and tax treatment
The law allows limited deductions. Employers may deduct amounts where workers were absent without authorisation. This includes absences without medical certificates.
After such deductions, employers must pay 100% of the remaining balance.
The ministry confirmed that workers who receive the 13th month pay in line with the law will not pay tax on the benefit.
Further clarification
The Ministry of Employment and Human Resource Planning said further clarification is available through its Department of Labour Relations and Regulations.
It advised workers and employers to seek guidance if unsure about eligibility or calculations.