How does Grenada payroll tax work in 2026?
Grenada runs two payroll charges: National Insurance at 13.5% of pay (employee 6.25%, employer 7.25%) and income tax withheld by the employer. Income tax starts above EC$36,000 a year, at 10% on the next EC$24,000 and 28% above. For companies paying staff here, Teamed's real HR and legal experts, assigned within 24 hours, check the route first and map each payroll duty. Every statutory cost is itemised.
· Grenada guide
Photo: Hugh Whyte on Unsplash
National Insurance is 13.5% of insurable earnings in 2026, up to EC$5,200 a month: the employer pays 7.25% and the employee 6.25%.
Income tax is withheld by the employer. An employee pays none on the first EC$36,000 a year, 10% on the next EC$24,000 and 28% above that.
The employer pays the income tax withheld within seven days after the month ends, and National Insurance by the end of the month, with a 14-day grace period.
What does Grenada National Insurance cost the employer and the employee?
In 2026 National Insurance is 7.25% for the employer and 6.25% for the employee, a combined 13.5%.
It applies to insurable earnings up to EC$5,200 a month or EC$1,200 a week.
The Collection of Contributions Regulations schedule steps the rate up by 0.25 of a point on each side every 1 January, from 2024 to 2031. The rate was 6.75% and 5.75% in 2024, and 7% and 6% in 2025.
| From | Employer | Employee | Combined |
|---|---|---|---|
| 1 January 2026 | 7.25% | 6.25% | 13.5% |
| 1 January 2027 | 7.5% | 6.5% | 14% |
| 1 January 2031 | 8.5% | 7.5% | 16% |
The NIS also publishes a rate of 1% for employees outside the normal age range, paid by the employer only. The pensionable age is 63 in 2026, 64 in 2027 and 65 from 2028. We confirm which payments count as insurable earnings and the age range before the first payslip.
How does income tax on wages work in Grenada?
The first EC$36,000 a year is not taxed. The next EC$24,000 is taxed at 10%, and anything above that at 28%.
The employer deducts it from each payment.
The Inland Revenue Division says employees who earn more than EC$3,000 a month, or EC$36,000 a year, pay income tax. Orders made under the Income Tax Act set the rates: EC$36,000 was set in 2014, 15% became 10% in 2017, and 30% became 28% from 1 January 2019.
| Annual pay (EC$) | Tax on it |
|---|---|
| Up to 36,000 | None |
| 36,001 to 60,000 (the next 24,000) | 10% |
| Above 60,000 | 28% |
The Act's consolidated text still shows an older flat rate, and the Ministry of Finance's explainer shows 15% and 30%, so we use the later Orders. We did not find the Division's current deduction tables, and we confirm how National Insurance and other allowances are applied before the first payslip. We found no change to these rates in the 2026 Budget Statement.
What does payroll look like at four pay levels?
At EC$5,200 a month the employee's National Insurance is EC$325 and the income tax on our arithmetic is EC$256.
The employer's cost on top is EC$377.
| Monthly gross pay (EC$) | Employee NI 6.25% (EC$) | Income tax (EC$) | Total deductions (EC$) | Take-home (EC$) |
|---|---|---|---|---|
| 1,200 | 75.00 | 0.00 | 75.00 | 1,125.00 |
| 3,000 | 187.50 | 0.00 | 187.50 | 2,812.50 |
| 5,200 | 325.00 | 256.00 | 581.00 | 4,619.00 |
| 8,000 | 325.00 | 1,040.00 | 1,365.00 | 6,635.00 |
The figures are our arithmetic from the rates above, before any allowance or relief for National Insurance, and before any bonus. Income tax is the annual tax divided by twelve. A real payslip can differ.
What does a Grenada employer file and pay each month?
Register as an employer, deduct income tax and the employee's National Insurance when you pay, and pay both over on time.
Income tax is due within seven days after the month ends, and National Insurance by the end of the month.
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Register
Register with the Comptroller of Inland Revenue within 30 days after the end of the month in which you become an employer, and register every employee with the NIS.
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Deduct and give a statement
Take the employee's National Insurance and income tax from pay, and give an itemised statement of gross pay, deductions and net pay with each payment.
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Pay the Inland Revenue Division
Pay the tax withheld within seven days after the end of the month, with the monthly return.
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Pay the NIS
Pay both shares of National Insurance by the end of the month. Contributions paid more than 14 days after month end carry a 10% surcharge and 1% interest for each month or part of a month.
The employer's annual return of tax deducted is due within one month after the end of the year, and the employee's certificate of remuneration and tax deducted comes with it. An employer who fails to deduct tax can be made personally liable for it. Wages are paid at least monthly for monthly employees and at least fortnightly for others.
How does Teamed help with Grenada payroll?
Teamed's real HR and legal experts check the right route for your Grenada hire first: employer of record, contractor or your own entity, and then map who files and pays each of the duties above.
Every statutory cost is itemised, so you see each line.
Pricing has no hidden costs, and real HR and legal experts come on every plan.
The check is part of every plan and comes before any contract is signed. Contractor, employer-of-record and own-entity routes run on one platform, so a change of route does not mean a change of provider.
Run the Employer Cost Calculator to model total cost including employer contributions before the first offer goes out. EOR is the right model for a first hire in many countries, until it isn't.
Frequently asked questions
When must a Grenada employer pay income tax withheld from wages?
Within seven days after the end of the month in which it was deducted, with the monthly return. The employer's annual return is due within one month after the end of the year.
What is the National Insurance rate in Grenada?
13.5% in 2026: 7.25% from the employer and 6.25% from the employee, on insurable earnings up to EC$5,200 a month. It rises by 0.25 of a point on each side each January until 2031.
What is the income tax rate in Grenada?
Nothing on the first EC$36,000 a year, 10% on the next EC$24,000 and 28% above that. We take these from the Income Tax Orders of 2014, 2017 and 2018 and confirm the Division's current tables before the first payslip.
What happens if an employer pays National Insurance late?
The NIS allows 14 days after the end of the month. After that it charges a 10% surcharge and 1% interest for each month or part of a month that the payment is outstanding.
Grenada runs National Insurance at 13.5% and income tax of 10% then 28% above EC$36,000 a year, and the employer withholds both.
The deadlines are short: seven days for income tax and a 14-day grace period for National Insurance.
Deduct the employee's shares when you pay, and map who files before the first payslip.
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