How does payroll work in Grenada?

Payroll

Grenada

DIRECT ANSWER

Payroll in Grenada requires employers to withhold two statutory deductions from each employee's gross pay: PAYE income tax and National Insurance Scheme (NIS) contributions. As of January 2026, the combined NIS rate is 14% of insurable earnings (7.5% employer, 6.5% employee), while PAYE is charged at 10% and 28% depending on income band after the personal allowance. Both are filed through Grenada's G-TAX system and due monthly.

The two statutory deductions

Every employer running payroll in Grenada withholds two separate amounts from gross pay. Understanding how they interact is the foundation for everything else in payroll processing.

Deduction	2026 rate	Paid by	Filed via
NIS	14% total (7.5% employer / 6.5% employee)	Both employer and employee	NIS e-remittance system
PAYE	10% / 28% by income band	Employee (employer withholds)	G-TAX (Inland Revenue)

Pay frequency and payslips

Most Grenadian employers run payroll monthly, though some sectors use bi-weekly or weekly cycles depending on the nature of the work. Regardless of frequency, employees are entitled to a clear breakdown of gross pay, NIS deducted, PAYE deducted, and net pay for each pay period.

Keeping accurate payroll records isn't optional. Both the NIS Board and the Inland Revenue Division can request historical payroll records during an audit, and the burden of producing them falls on the employer.

Filing and remittance deadlines

NIS contributions and PAYE withholdings are both due monthly. NIS allows a 14-day grace period from the end of the month before penalties apply, while PAYE remittance follows the Inland Revenue Division's own filing calendar. Missing either deadline triggers surcharges and interest.

How often are employees paid in Grenada?

Most employers in Grenada run payroll monthly, though weekly and bi-weekly cycles are used in some sectors. Pay frequency should be stated in the employment contract, and whichever cycle is used, employees must receive a payslip showing gross pay, each deduction, and net pay.

What payroll records must Grenadian employers keep?

Employers should retain records of gross earnings, NIS contributions, PAYE withheld, hours worked, and leave taken for each employee. Both the NIS Board and the Inland Revenue Division can request these during an audit, so records need to be retrievable rather than just archived.