--- title: "Cost of employing someone in Grenada 2026" description: "What an employee costs in Grenada: 7.25% employer National Insurance up to EC$5,200 a month, four worked examples, and the leave and termination costs behind them." canonical: https://www.teamed.global/country-hiring-guides/grenada/cost-breakdown --- Grenada · Cost breakdown # 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. Last reviewed 21 October 2026 · Grenada guide - [Talk to an expert about hiring in Grenada](https://www.teamed.global/contact) - [Run the employer-cost numbers](https://www.teamed.global/tools/employer-cost) ![A village of colourful roofs and palm trees along a curved shoreline at Gouyave, Grenada, seen from above.](/cluster-assets/country-hiring-guides/grenada/cost-breakdown/images/hero.webp) Photo: Hugh Whyte on [Unsplash](https://unsplash.com/photos/coastal-town-with-colorful-buildings-and-ocean-view-KIfVGXf6Kzc?utm_source=teamed&utm_medium=referral) The short answer 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](/pricing) 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](https://www.teamed.global/tools/employer-cost) 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. A note from Tom Price-Daniel 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. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Hiring in Grenada, overview](/country-hiring-guides/grenada) - [Grenada hiring guide](/country-hiring-guides/grenada/hiring-guide) - [Grenada termination and severance](/country-hiring-guides/grenada/termination-and-severance) - [Grenada tax and payroll](/country-hiring-guides/grenada/tax-and-payroll) - [Grenada EOR vs entity](/country-hiring-guides/grenada/eor-vs-entity) - [Hiring contractors in Grenada](/contractor-hiring-guides/grenada) - [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 Employment Act (Cap. 89), the Minimum Wages Order 2023 as amended, and the National Insurance Act with its 2023 contribution regulations. They also come from the Income Tax Act (Cap. 149) with its amending orders, the Bank Holidays Act (Cap. 25), the Foreign Nationals and Commonwealth Citizens (Employment) Act (Cap. 115) and the Ministry of Labour. The National Insurance Scheme and Inland Revenue Division websites refuse automated connections, so we read their pages from archived copies dated April to June 2026. Confirm current requirements with the Ministry of Labour, the National Insurance Scheme, the Inland Revenue Division and a qualified adviser before relying on any figure. Sources: [National Insurance (Collection of Contributions) (Amendment) (No. 2) Regulations 2023, SRO 43 of 2023](https://laws.gov.gd/index.php/s-r-o/633-sr-o-43-of-2023-national-insurance-collection-of-contributions-amendment-no-2-regulations-2023/download) , [National Insurance Scheme, employer page (archived April 2026)](https://web.archive.org/web/20260418031552/https://nisgrenada.org/contributors/employer/) , [National Insurance (Amendment) (No. 2) Act 2023](https://laws.gov.gd/index.php/acts/977-act-no-7-of-2023-national-insurance-amendment-no-2/download) , [Employment Act, Cap. 89](https://laws.gov.gd/index.php/chapters/e-85-98a/1146-cap89-employment-act/download) , [Minimum Wages Order 2023, SRO 42 of 2023](https://laws.gov.gd/index.php/s-r-o/632-sr-o-42-of-2023-minimum-wages-order/download) .