T&T SME HR Outlook 2027

Pre-budget edition, October 2026

2027 will test Trinidad and Tobago employers on three fronts at once: a shrinking gas supply, rising employment costs, and labour law that is about to change. This report sets out what has happened since January 2025, what is coming in 2027, and what employers should do about it.

Ten key findings

1. 1

   Gas is the story of 2025 and 2026.

   Production averaged about 2,540 million standard cubic feet a day in 2025 and fell to about 2,430 in early 2026. Gas-based plants have closed or cut back, including Nutrien, Methanex Titan and Proman.

2. 2

   Relief is real but slow.

   New fields and the revived Venezuelan cross-border projects will add gas from 2027, with the largest volumes later in the decade.

3. 3

   The wider economy is flat.

   Estimates for 2025 range from 0.5% contraction to 0.8% growth. Non-energy activity is holding up better than energy.

4. 4

   Unemployment is rising again.

   It reached 5.4% in the first quarter of 2026, up from 3.8% in mid-2025. Youth unemployment is at a ten-year high.

5. 5

   Employment costs rise sharply in 2027.

   NIS contributions went from 13.2% to 16.2% in January 2026 and rise to 19.2% in January 2027. Employers pay two-thirds.

6. 6

   Severance may double.

   The Retrenchment and Severance Benefits (Amendment) Bill, 2026 has passed the Senate. If it passes the House, redundancy costs will rise steeply.

7. 7

   Paternity leave is coming.

   The Maternity Protection (Amendment) Bill, 2026 proposes 14 days' paid paternity leave and paid breastfeeding breaks, funded by employers.

8. 8

   Foreign exchange is still tight.

   Firms that import report receiving 20 to 30% of the US dollars they request.

9. 9

   Growth is shifting.

   Agriculture, tourism, business process outsourcing, creative industries, energy services for Guyana and Suriname, and digital services are where new jobs are most likely.

10. 10

    People decisions now carry more risk.

    Retrenchment, contractor use, migrant hiring and pay structures all need a fresh look before 2027 begins.

What employers should do before 2027

• Update payroll for the January 2027 NIS rate of 19.2%
• Rework the 2027 staffing budget with the higher NIS cost
• Calculate what a redundancy would cost under current law and under the severance bill
• Check every worker has a written contract or letter of appointment
• Review anyone treated as a contractor
• Confirm workmen's compensation insurance is in place
• Track work permit and migrant registration card expiry dates
• Prepare a paternity and family leave policy for when the new law passes

Read the full report

The full 15-page report covers the energy sector in detail, the economy and budget, the labour market, 2027 employment costs, the severance and paternity leave bills, growth opportunities by sector, priorities for HR practitioners and a complete 2027 checklist for SME owners.