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Payroll and Benefits Guide Grenada

Last updated: Mar 03, 2026

Currency
East Caribbean Dollar
Employer Taxes
6.75%
Payroll Frequency
Monthly
Employee Costs
5.75%
Capital
St. George's
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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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

Highest
Lowest

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

Highest
Lowest

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.

  • 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)

Highest
Lowest

VAT

Standard VAT rate: 15% on most goods and services. Some goods/services (hotels/diving) subject to 10%.

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Grenada
Download:
CSV
PDF
ICS
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