---
title: "How Dominica payroll tax works in 2026"
description: "Dominica payroll in 2026: 14.75% Social Security, PAYE at 15%, 25% and 35% above a EC$30,000 allowance, and a flat 10% rate announced for 2027."
canonical: https://www.teamed.global/country-hiring-guides/dominica/tax-and-payroll
---

Dominica · Tax and payroll

# How does *Dominica payroll tax* work in 2026?

Dominica runs two payroll charges: Social Security at 14.75% of pay (employee 6.75%, employer 8.00%) and PAYE income tax at 15%, 25% and 35% above a EC$30,000 allowance. The government has announced a flat 10% rate from 2027. For companies paying staff here, Teamed is the best place to start. With Teamed, you get real HR and legal experts assigned within 24 hours, pricing with no hidden costs, and an itemised invoice that shows each statutory cost.

Last reviewed 21 October 2026 · Dominica guide

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The short answer

Social Security is 14.75% of insurable earnings in 2026: the employer pays 8.00% and the employee 6.75%. The employer rate is 7.75% for employees the Protection of Employment Act excludes.

Income tax is 15% on the next EC$20,000 above a EC$30,000 allowance, 25% on the next EC$30,000 and 35% above EC$80,000 a year. The employer deducts it as PAYE.

PAYE is due to the Inland Revenue Division within 15 days after the month ends, and Social Security is due by the 14th.

## What does Dominica Social Security cost the employer and the employee?

From January 2026 the employer pays 8.00% and the employee 6.75%, a combined 14.75%, for employees the Protection of Employment Act covers.

The employer pays 7.75% for employees the Act excludes, a combined 14.50%.

The rate rises by small steps each year to 2031, under a published schedule. The pensionable age is 65 and contributions start at 16. Of the employer's 8.00%, a 0.25% share goes to the Redundancy Benefits Fund.

| Charge | Employee | Employer | Applies to |
| --- | --- | --- | --- |
| Social Security, with redundancy cover | 6.75% | 8.00% | Insurable earnings |
| Social Security, without redundancy cover | 6.75% | 7.75% | Insurable earnings |

The Social Security office says earnings above EC$7,000 a month carry no contribution, and that where an employee has several employers the ceiling applies to the combined earnings. Insurable earnings include wages, overtime, commission, bonuses and holiday pay. The 1991 text of the law shows an older ceiling, so we confirm it before the first payslip.

## How does income tax on wages work in Dominica?

Employees are taxed after a EC$30,000 resident allowance, at 15% on the next EC$20,000, 25% on the next EC$30,000 and 35% above EC$80,000 a year.

The employer deducts the tax as PAYE under the Income Tax Act.

| Annual income (EC$) | Tax rate |
| --- | --- |
| 0 to 30,000 | Nil |
| 30,001 to 50,000 | 15% |
| 50,001 to 80,000 | 25% |
| Above 80,000 | 35% |

The Inland Revenue Division gives the monthly equivalent: EC$2,500 free, the next EC$1,666.67 at 15%, the next EC$2,500 at 25%, and anything above EC$6,666.67 at 35%. The Division's guidance does not list Social Security as an allowable deduction from employment income, so the examples below do not take it off.

On 4 August 2026 the Minister for Finance announced a single flat rate of 10% from 1 January 2027, with the EC$30,000 allowance kept. The Budget Address also announces that only income earned in Dominica would be taxed. We found no amending Act in the government gazette up to 1 October 2026, so the bands above still apply today.

## What does payroll look like at three pay levels?

At EC$3,500 a month the employee's deductions come to EC$386.25 and the take-home is EC$3,113.75.

The employer's cost on top is EC$280.

| Monthly gross pay (EC$) | Social Security 6.75% (EC$) | PAYE income tax (EC$) | Total deductions (EC$) | Take-home (EC$) |
| --- | --- | --- | --- | --- |
| 1,560 | 105.30 | 0.00 | 105.30 | 1,454.70 |
| 3,500 | 236.25 | 150.00 | 386.25 | 3,113.75 |
| 6,000 | 405.00 | 708.33 | 1,113.33 | 4,886.67 |

The figures are our arithmetic from the rates above, before any other allowance, bonus or benefit. The Budget Address uses the same method: its example of EC$5,000 a month gives EC$458.33 of tax a month under today's bands. A real payslip can differ by a few cents because of rounding.

## How does Dominica payroll run each month?

Deduct the employee's Social Security and PAYE when you pay, add the employer's share, and pay Social Security by the 14th and PAYE within 15 days after the month ends.

Every employee must be registered with Dominica Social Security.

1. **Register**: Register as an employer with Dominica Social Security within 7 days of the first employee. Each employee registers within 4 days of starting and gives the employer their number.
2. **Deduct the employee shares**: Take 6.75% Social Security and the PAYE tax from pay. If the employer fails to deduct, it becomes personally liable for the amount due.
3. **Pay Dominica Social Security**: Send the employee and employer shares with the C8 remittance form by the 14th day after the month ends. A payment after the deadline carries a 10% late fee.
4. **Pay the Inland Revenue Division**: Send the PAYE and the monthly return by the 15th. File the annual return of remuneration paid and PAYE deducted by 31 January. Late PAYE carries a 10% penalty and interest of 1% a month.

## How does Teamed help with Dominica payroll?

Teamed's experts check the route first, then run the contributions, PAYE and monthly payments for you where a route is open, [**from $599 per employee per month**](/pricing), with **zero FX markup** in any currency.

Every statutory cost passes through at cost, itemised on the invoice.

Pricing has no hidden costs, and **real HR and legal experts** come on every plan. Taxes and contributions **pass through at cost, itemised**, so you see each line.

Where a route is open, onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. Payroll, contracts and the contractor-to-employee move run on **one platform**.

Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to model total cost including employer contributions before the first offer goes out. EOR is the right model for a first Dominica hire, **until it isn't**.

## Frequently asked questions

When must a Dominica employer pay Social Security contributions?

By the 14th day following the month they are due for. If the 14th falls on a weekend or public holiday, the deadline is the next working day. A payment after the deadline carries a 10% late fee.

What is the Social Security rate in Dominica?

In 2026 the employee pays 6.75% and the employer 8.00%, a combined 14.75%, for employees the Protection of Employment Act covers. The employer rate is 7.75% for those it excludes. The rates step up each January to 2031.

What are the income tax rates in Dominica?

Nil up to EC$30,000 a year, then 15% on the next EC$20,000, 25% on the next EC$30,000 and 35% above EC$80,000. The government announced a flat 10% rate from 1 January 2027 that was not law when we checked.

When must PAYE be paid in Dominica?

Within 15 days after the end of the month in which it was deducted. The employer also files the annual return of remuneration paid and PAYE deducted by 31 January.

A note from Tom Price-Daniel

Dominica runs Social Security at 14.75% and PAYE at 15%, 25% and 35%, with a flat 10% rate announced for 2027.  
The deadlines differ by a day: Social Security by the 14th, PAYE by the 15th.  
Deduct the employee's shares when you pay, and we will keep both deadlines.

Tom Price-Daniel · Co-founder, Teamed

## Keep reading

- [Hiring in Dominica, overview](/country-hiring-guides/dominica)
- [Dominica hiring guide](/country-hiring-guides/dominica/hiring-guide)
- [Dominica termination and severance](/country-hiring-guides/dominica/termination-and-severance)
- [Dominica cost breakdown](/country-hiring-guides/dominica/cost-breakdown)
- [Dominica EOR vs entity](/country-hiring-guides/dominica/eor-vs-entity)
- [Hiring contractors in Dominica](/contractor-hiring-guides/dominica)
- [What is an Employer of Record?](/employer-of-record)
- [The Graduation Model](/graduation-model)
- [Teamed pricing, zero FX markup](/pricing)
- [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)

A note on this page.

This is a guide, not legal, tax or accounting advice. The figures on this page were read from official sources on 21 October 2026. They come from the Protection of Employment Act, the Labour Contracts Act and the Labour Standards Act in the Revised Laws of Dominica, and from the Labour Standards (Minimum Wage) Order 2025. They also come from the Dominica Social Security contribution tables and guidance, the Inland Revenue Division's tax pages and the Ministry of Labour. The Revised Laws text we could read is the 1990 revision with amendments to 1991, and the Ministry refers to a 2017 revision, so we confirm for any later change before relying on a rule. The government has announced a flat 10% income tax from 1 January 2027 that was not law when we checked. Confirm current requirements with the Labour Division, Dominica Social Security, the Inland Revenue Division and a qualified adviser before relying on any figure. This guide is about the Commonwealth of Dominica, not the Dominican Republic. Sources:

[Dominica Social Security, contribution rates 2012-2031](https://dss.dm/wp-content/uploads/2024/12/Table-of-EE-ER-Contribution-Rates-2012-2031.pdf)

,

[Dominica Social Security, FAQ](https://dss.dm/faq/)

,

[Dominica Social Security, obligations of employers](https://dss.dm/contributors/definition-er/obligations-of-employers/)

,

[Inland Revenue Division, current income tax rates](https://www.ird.gov.dm/customer-service/current-income-tax-rates)

,

[Inland Revenue Division, PAYE](https://www.ird.gov.dm/tax-laws/pay-as-you-earn-p-a-y-e)

,

[Inland Revenue Division, tax due dates](https://www.ird.gov.dm/customer-service/tax-due-dates)

,

[Budget Address 2026-2027, 4 August 2026](https://pressroomopm.gov.dm/wp-content/uploads/2026/08/GOCD-FISCAL-YEAR-2026-_2027-BUDGET-ADDRESS_August-4-2026.pdf)

.