In Guernsey, statutory annual leave cannot be forfeited. Carryover is allowed by agreement, and unused leave must be taken later or paid out on termination. A blanket “use-it-or-lose-it” policy that deletes statutory leave is not lawful.
Back
Payroll and Benefits Guide Guernsey
Last updated: Mar 03, 2026
Currency
Pound Sterling (£) (GBP)
Employer Taxes
10.90%
Payroll Frequency
Monthly
Employee Costs
14.70%
Capital
Saint Peter Port
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December, Companies can choose any year-end date.
Contribution
| Employer Payroll Contributions | |
| 6.90% | Social Security, applied on salary between 758.33 and 14,989 GBP monthly |
| 3.00% | Pension |
| 1.00% |
Secondary Pension Scheme*
|
| 10.90% |
Total Employer Cost
|
|
Employee Payroll Contributions
|
|
| 7.20% | Social Security, applied on salary between 758.33 and 14,989 GBP monthly |
| 6.50% | Pension |
| 1.00% | Secondary Pension Scheme* |
| 14.70% | Total Employee Cost |
| Employee Income Tax | |
| 20% | Standard rate |
*As of July 2024, employers are required to automatically enrol eligible employees into an approved secondary pension scheme, often called “Your Island Pension” (YIP). Smaller employees will be phased in over the next 15 months. From January 2025, companies with 6 or more employees must contribute and from October 2025 all companies must contribute from 1 worker upwards).
Both the employer and employee must contribute, starting at a rate of 1% each which will gradually increase each year until a total of 10% contribution is met in 2032 (3.5% from the employer and 6.5% from the employee). Contributions are based on total qualifying earnings (upper and lower limits), the same as Social Security, which means qualified earnings include commission, bonuses, overtime payments etc.
Employees can opt-out at any point of the secondary pension scheme, however they will need to be re-enrolled every three years.
Employer taxes
Highest
Lowest
Working Hours
General
In Guernsey, there is no legal mandate for standard working hours or minimum rest breaks.
Guernsey offers flexibility in working hours, it is essential for employers and employees to communicate clearly and outline all terms and conditions in writing to ensure mutual understanding and compliance with local regulations.
Overtime
-
No Statutory Maximum Hours: There is no Guernsey law that specifies a maximum number of hours an adult employee can work per day or per week.
-
No Statutory Rest Breaks: There is no statutory entitlement to minimum daily or weekly rest periods.
-
Contractual Requirement: It is therefore essential that the employee’s Written Statement of Employment (or contract) clearly outlines the normal hours of work and any terms and conditions relating to working hours.
Overtime Compensation (Contractual Obligation)
There is no general statutory requirement for an employer to pay a premium rate (e.g., 150% or 200%) for standard overtime hours. Compensation is governed entirely by the contract.
-
Contractual Obligation (Conditions of Employment Law 1985): The law mandates that if overtime rates (or shift pay, or other pecuniary benefits) are applicable to the role, the details of those rates must be clearly included in the Written Statement of Employment.
-
No Statutory Minimum Rate: If the contract is silent on overtime pay, the employee is generally only entitled to their normal hourly rate for any additional hours worked, provided that their total pay remains above the Statutory Minimum Wage for all hours worked.
-
Compensation Method: Employers may choose to compensate overtime with Time Off In Lieu (TOIL), as opposed to paid overtime, provided this is clearly defined and agreed upon in the contract.
-
Contractual Practice: Many employment contracts in Guernsey adopt a premium rate (such as 1.5 times or 2 times the standard rate) for overtime, weekends, and public holidays, but this is a contractual obligation, not a statutory minimum.
| Compensation Detail | Formal Governmental Requirement |
| Maximum Weekly Hours | None (No statutory maximum working hours). |
| Minimum Pay Rate | None (No statutory minimum premium rate). |
| Contract Requirement | Overtime rates must be specified in the written contract if they are applicable to the role. |
| Compensation Floor | All hours worked must be compensated at or above the Adult Minimum Wage Rate (£12.60 per hour, effective October 1, 2025). |
Payroll
Payroll Cycle
The payroll cycle is typically monthly.
13th Salary
There is no statutory requirement for a 13th or 14th month salary.
Leave
Annual Leave (Vacation)
The entitlement to annual leave is usually determined by the employment contract between the employer and the employee. Employers and employees should agree on the amount of annual leave and include it in the employment contract.
PTO carryover
Public holidays
If New Year’s Day falls on a weekend, it will be observed on the following Monday. Liberation Day will remain on the weekend unless special circumstances arise.
If Christmas Day or Boxing Day falls on a Saturday, they will be observed on the following Monday. If they fall on a Sunday, they will be observed on the following Tuesday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 4 May 2026 | Monday | May Day Bank Holiday | Standard holiday |
| 9 May 2026 | Saturday | Liberation Day | Standard holiday |
| 25 May 2026 | Monday | Spring Bank Holiday | Standard holiday |
| 31 August 2026 | Monday | Summer Bank Holiday | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
| 28 December 2026 | Monday | Substitute Day for Boxing Day | Standard holiday |
Sick Leave
In Guernsey, there is no statutory requirement for employers to provide paid sick leave. This means that any sick pay entitlement is typically outlined in the employee’s contract of employment. If an employer does offer sick pay, the terms should clearly state how much sick pay is provided and for how long.
However, employees who are unable to work due to illness or injury may be eligible for sickness benefit through the Social Security system. To qualify, the worker must be unable to work for at least four days and meet certain contribution requirements. A medical certificate from a doctor is required to make a claim.
Maternity Leave
- Basic Maternity Leave: All pregnant employees are entitled to 12 weeks of basic maternity leave, regardless of their length of service.
- Enhanced Maternity Leave: Employees who have worked continuously for the same employer for at least 15 months are entitled to an enhanced period of 26 weeks of maternity leave.
- Compulsory Maternity Leave: There is a compulsory period of two weeks’ leave immediately following childbirth, during which the employee is not allowed to work.
- Right to Return: Employees have the right to return to their original job or a suitable alternative after their maternity leave.
- Keeping in Touch Days: Employees can work up to ten days during their maternity leave without ending the leave period.
- Pay: In Guernsey, maternity leave is generally unpaid. However, employees may be eligible for maternity benefits through the Social Security system.
Paternity Leave
Paternity leave is referred to as “maternity support leave.”
- Duration: Partners of employees entitled to basic maternity leave can take up to two weeks of maternity support leave.
- Eligibility: To qualify, the partner must have worked continuously for the same employer for at least 15 months by the beginning of the 11th week before the due date.
- Timing: The leave can start on the day the child is born or on the discharge from the hospital of the mother or baby.
- Unpaid Leave: This leave is generally unpaid, although partners may be entitled to other grants or benefits.
Employer taxes
Highest
Lowest
Termination
Termination Process
In Guernsey, the termination process for employment is governed by the Employment Protection (Guernsey) Law, 1998.
Employers must have a valid reason for dismissal, such as:
- Capability or qualifications
- Conduct
- Redundancy
- Statutory restrictions preventing continued employment
- Some other substantial reason (SOSR)
A fair process must be followed, including:
-
- Investigation of the reason for dismissal
- Written notice of potential dismissal
- A disciplinary hearing where the employee can present their case
- A written decision and the right to appeal
Employees with at least one year of continuous service can claim unfair dismissal if they believe they were terminated without a fair reason or procedure. Certain dismissals are automatically unfair, such as those related to pregnancy, maternity, or trade union activities.
Employees with one year of continuous service are entitled to a written statement of the reasons for dismissal upon request, provided within seven days.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Employers must determine the pay period and payday. Under the Conditions of Employment (Guernsey) Law, 1985 employers must provide in writing details of the rate and the pay interval. | On termination of employment, the employer must pay all wages and any contractual amounts due. | There is no statutory requirement identified that all wages must be paid into a bank account. |
Severance Pay
There is no statutory requirement for severance pay in Guernsey. Any severance payments are typically based on contractual agreements or negotiated packages.
Notice period
Employees are generally entitled to a minimum notice period based on their length of service:
- More than 1 month but less than 2 years: 1 week
- More than 2 years but less than 5 years: 2 weeks
- 5 years or more: 4 weeks
These notice periods can be extended if specified in the employment contract.
Probation Period
In Guernsey, the probation period for new employees is typically determined by the employer and specified in the employment contract. However, it is common for probation periods to last between three to six months.
Immigration
- Employment Permit Application:
- The employer must first apply for an Employment Permit through the Population Portal. This involves providing details about the job role and the prospective employee.
- Work Permit Application:
- Once the Employment Permit is approved, the employer must then apply for a Work Permit directly with the Guernsey Border Agency (Immigration). This application includes submitting a Criminal Declaration Form and an Overseas Police Certificate.
- Visa Application:
- After the Work Permit is granted, the employee can apply for a visa online through the UK Visas and Immigration service. The employee will need the Employment Permit reference number for this application.
- Approval and Arrival:
- Once the visa is approved and issued, the employee can travel to Guernsey to begin their employment.
Minimum Wage
The minimum wage rates in Guernsey are as follows:
- Adult Minimum Wage Rate (18 years and over): £10.65 per hour
- Young Person’s Minimum Wage Rate (16 and 17 years old): £9.65 per hour
MINIMUM WAGE (PER MONTH)
Highest
Lowest
VAT
Stay up to date on payroll & employment law changes
See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws
While Papaya has made efforts to ensure the accuracy and timeliness of the information provided here, Papaya does not offer any warranties or representations, whether express or implied, regarding its correctness. The information is subject to change without prior notice. Additionally, the content of this publication may be affected by changes in (tax or others) laws in various jurisdictions. None of the information in this publication should be construed as a commercial offer or solicitation, or as a recommendation or any specific transaction. It should not be considered as a substitute for engaging in a legal, tax, financial, investment, or accounting consultancy. Papaya is not responsible for any loss or damage incurred from the use of or reliance on the information provided herein.
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
Guernsey
Download:
CSV
PDF
ICS
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 4 May 2026 | Monday | May Day Bank Holiday | Standard holiday |
| 9 May 2026 | Saturday | Liberation Day | Standard holiday |
| 25 May 2026 | Monday | Spring Bank Holiday | Standard holiday |
| 31 August 2026 | Monday | Summer Bank Holiday | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
| 28 December 2026 | Monday | Substitute Day for Boxing Day | Standard holiday |
Questions & Answers