How do employers calculate NIS contributions in Grenada?
How the calculation flows
The employer applies the applicable rate to the employee's insurable (gross) earnings for the pay period, then remits both the employee's and the employer's shares together in a single payment.
Step by step
- Determine the employee's gross earnings for the period — salary, wages, and any other insurable pay.
- Confirm earnings do not exceed the NIS insurable earnings ceiling. If they do, cap the contribution base at the ceiling.
- Calculate the employee's share: gross earnings × 6.5%. Deduct this from the employee's pay.
- Calculate the employer's share: gross earnings × 7.5%. This is an additional employer cost, not deducted from the employee.
- Remit both shares together to the NIS Board by the end of the month, with a 14-day grace period.
Worked example
For an employee earning EC$3,000 gross per month in January 2026:
The employee receives EC$3,000 minus EC$195 (plus any applicable PAYE deduction) as net pay. The employer remits EC$420 in total.
Who must register and contribute
All employed persons in Grenada between the ages of 16 and 60 are required to contribute, and employers must register every employee and remit on their behalf. Self-employed individuals may register voluntarily. Employers must register with the NIS Board within 14 days of hiring their first employee.
What earnings are subject to NIS contributions in Grenada?
NIS is calculated on insurable earnings, which covers salary, wages, and other regular insurable pay, up to the maximum insurable earnings ceiling set by the NIS Board. Earnings above that ceiling are not subject to further NIS deduction.
When must NIS contributions be remitted in Grenada?
Contributions are due monthly. Employers have a 14-day grace period from the end of the month to submit both the payment and the accompanying e-remittance upload before surcharges begin to apply.
