What does it cost to employ someone in Grenada in 2026?
The employer pays 7.25% National Insurance on pay up to EC$5,200 a month, so at most EC$377 a month on top of gross pay. At the EC$1,200 clerical floor that is EC$87 a month. Leave, maternity pay and the termination allowance sit on top. For companies budgeting a hire here, Teamed's real HR and legal experts, assigned within 24 hours, check the route first and show you the statutory costs. You also get 24/5 human support with a first response within 15 minutes.
· Grenada guide
Photo: Hugh Whyte on Unsplash
The employer pays 7.25% to the National Insurance Scheme on insurable earnings up to EC$5,200 a month. On EC$3,000 a month that is EC$217.50.
The Employment Act sets no thirteenth-month payment. Paid leave, maternity pay, sick pay and the termination allowance are costs you budget for yourself.
What does an employer pay on top of gross pay in Grenada?
The employer pays 7.25% National Insurance in 2026, on pay up to EC$5,200 a month.
That is at most EC$377 a month for each employee.
| Monthly gross pay (EC$) | Insurable earnings (EC$) | Employer National Insurance, 7.25% (EC$) |
|---|---|---|
| 1,200 (the clerical minimum wage) | 1,200 | 87.00 |
| 3,000 | 3,000 | 217.50 |
| 5,200 | 5,200 | 377.00 |
| 8,000 | 5,200 (the ceiling) | 377.00 |
The totals are our arithmetic from the National Insurance (Collection of Contributions) Regulations. Insurable earnings include overtime, bonuses, commission and holiday pay. A real payslip can differ by a few cents because of rounding.
The rate rises by 0.25 of a point each January: 7.5% in 2027 and 8.5% in 2031. The employer also pays 1% for employees outside the normal age range, and we confirm that range before the first payslip.
What does Teamed add to the cost?
Statutory costs pass through at their real amounts, itemised, so you see each line.
Teamed prices every country the same way, with zero FX markup in any currency, and the pricing page shows the fee.
Pricing has no hidden costs, and real HR and legal experts come on every plan. Our experts check which route fits your Grenada hire before any contract is signed, because the route decides which costs are yours.
Contractor, employer-of-record and own-entity routes run on one platform. Run the Employer Cost Calculator to model a hire at your own pay level. EOR is the right model for a first hire in many countries, until it isn't.
Which other costs belong in a Grenada budget?
Budget for paid annual leave, bank holidays, sick pay, maternity pay and the termination allowance as well as National Insurance.
Each is set by the Employment Act, and each is a cost of the job rather than an extra.
| Cost | What the Employment Act sets |
|---|---|
| Annual leave | 2 weeks in the first year, then 3 weeks, with pay |
| Overtime | At least 1.5 times the hourly wage, and 2 times on a Sunday or public holiday |
| Sick pay | After 12 months of service, at the normal wage less any National Insurance sickness benefit |
| Maternity | 3 months. After 18 months of service, two months' salary less the National Insurance allowance, for a monthly paid employee |
| Termination allowance | At least 1 week's wages for each completed year, after 1 year |
The termination allowance after five years is at least five weeks of wages on our arithmetic. It is not owed to someone fairly dismissed for conduct or to someone over the National Insurance pensionable age, which is 63 in 2026. Accrue it from the first year, because the right starts once service reaches a year.
Does Grenada require a thirteenth-month payment?
We found no thirteenth-month payment, Christmas bonus or holiday subsidy in the Employment Act.
Any bonus is a matter of contract.
The Minister can set minimum wages by order for a trade or occupation, so check the 2023 Order for the role. A collective agreement can add terms.
Frequently asked questions
How much does Grenada employer National Insurance cost?
7.25% of insurable earnings in 2026, on pay up to EC$5,200 a month (EC$1,200 a week). The employee pays 6.25%, and the combined rate is 13.5%. It rises by 0.25 of a point on each side every January until 2031.
What is the total employer on-cost in Grenada?
7.25% of gross pay up to EC$5,200 a month, so at most EC$377 a month. Income tax and the employee's share come out of the employee's pay, so they do not add to the employer's cost.
What is the cost of the minimum wage in Grenada?
For clerical roles it is EC$1,200 a month, plus EC$87 a month in employer National Insurance on our arithmetic. Other job categories have other floors in the Minimum Wages Order 2023.
Is the termination allowance a cost from the first year?
Not in the first year. The right starts once service reaches one year, and it is at least one week's wages for each completed year.
Grenada adds 7.25% to gross pay on the first EC$5,200 a month, so a clerical minimum-wage hire costs EC$87 a month in contributions.
The bigger numbers are the ones the percentage hides: paid leave, maternity pay and the termination allowance after a year.
Budget the contributions for each employee, and our experts will show every line.
Looking for a job in Grenada yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
