Payroll and Benefits Guide Grenada
Last updated: Mar 03, 2026
Contribution
|
Employer Payroll Contributions
|
|
| 6.75% | Employer share towards the National Insurance Scheme (Grenada) (NIS) |
| 6.75% |
Total Employment Cost
|
|
Employee Payroll Contributions
|
|
| 5.75% | Employee share of NIS |
| 5.75% |
Total Employee Cost
|
Income Tax
Resident PIT – progressive annual scale (2025):
-
Up to EC$24,000 → 10%
-
Above EC$24,000 → 30%
(Annual personal allowance EC$24,000)
Non-residents: taxed on Grenada-source income under similar PAYE withholding rules.
Employer taxes
Working Hours
General
Standard working week is 40 hours (for most employees) — 8 hours per day, Monday to Friday.
Overtime
-
Rate for overtime: At least 1.5× (150%) for overtime within first 8 hours beyond normal day.
-
2× (200%) for overtime on Sundays and public holidays.
Payroll
Payroll
The salary is paid monthly.
13th Salary
13-month salary payment is not mandatory under Grenadian statute.
Leave
Annual Leave (vacation)
Minimum statutory annual leave:
-
After one year of continuous service: 2 weeks (for many workers)
-
After 5 years of service: 3 weeks
PTO carryover
In Grenada, statutory annual leave is meant to be taken within the year it’s due (or shortly after). The law does not provide a general right to automatic carryover, but accrued vacation cannot be forfeited. If leave isn’t taken, it must be granted later or paid out on termination — a blanket “use-it-or-lose-it” policy is not lawful for statutory leave.
Public Holidays
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 7 February 2026 | Saturday | Independence Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday (Pentecost) | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 1 August 2026 | Saturday | Emancipation Day | Standard holiday |
| 3 August 2026 | Monday | Emancipation Day Holiday | Standard holiday |
| 10 August 2026 | Monday | Carnival Monday | Standard holiday |
| 11 August 2026 | Tuesday | Carnival Tuesday | Standard holiday |
| 19 October 2026 | Monday | National Heroes Day | Standard holiday |
| 25 October 2026 | Sunday | Thanksgiving Day | Standard holiday |
| 26 October 2026 | Monday | Thanksgiving Day Holiday | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
Sick Days
After 12 months’ continuous service, employees are eligible for paid sick leave on production of a medical certificate; employer pays normal rate less any NIS sickness benefit
Maternity Leave
Maternity leave is 12 weeks (3 months) with maternity pay required.
Employer taxes
Termination
Termination Process
Employment termination is regulated by the Employment Act (Grenada) and other labour laws. Contracts may end by resignation, dismissal (for cause or incapacity), redundancy, mutual agreement or expiry of fixed-term. Written notice is required, and termination on public policy grounds is regulated.
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Employer-initiated: Typically 1 month (for monthly-paid workers) after probation/initial period (per common practice).
-
Employee resignation: Similarly, 1 month for monthly paid.
-
Probation period notice: As per contract; probation may be up to 3 months for many roles.
Severance Pay
Statutory redundancy/severance four to six weeks per year of service in certain cases; employer obligations under “Redundancy” in Terms & Conditions of Employment Act (Cap 317) and Employment Act.
Probation Period
Probation may be up to 3 months, sometimes extended by contract/collective agreement.
Salary payment interval / date | Final payment on termination | Bank account payment requirement
-
Wages must be paid monthly or as specified in contract, and final wages/entitlements must be paid within 7 days of termination.
-
Bank payment: Payment may be via bank transfer if agreed or via cheque/cash as per contract; no specific legal ban on bank payments.
Immigration
Foreign nationals seeking employment in Grenada must obtain a work permit under the Immigration regulations, usually employer-sponsored, valid for 1 year and renewable. Employer must ensure permit before employment begins.
Minimum Wage
As of the latest publicly referenced Minimum Wage Order, the minimum wage in Grenada is EC$ 1,387 per month
MINIMUM WAGE (PER MONTH)
VAT
Standard VAT rate: 15% on most goods and services. Some goods/services (hotels/diving) subject to 10%.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 7 February 2026 | Saturday | Independence Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday (Pentecost) | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 1 August 2026 | Saturday | Emancipation Day | Standard holiday |
| 3 August 2026 | Monday | Emancipation Day Holiday | Standard holiday |
| 10 August 2026 | Monday | Carnival Monday | Standard holiday |
| 11 August 2026 | Tuesday | Carnival Tuesday | Standard holiday |
| 19 October 2026 | Monday | National Heroes Day | Standard holiday |
| 25 October 2026 | Sunday | Thanksgiving Day | Standard holiday |
| 26 October 2026 | Monday | Thanksgiving Day Holiday | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
Questions & Answers