What is the NIS contribution rate in Grenada?

Payroll

Grenada

DIRECT ANSWER

As of January 2026, the total NIS contribution rate in Grenada is 14% of insurable earnings, split between a 7.5% employer share and a 6.5% employee share. The rate is scheduled to increase gradually each year, reaching 16% by 2031 under Grenada's pension reform schedule.

Rate schedule, 2025 to 2031

The National Insurance Board increases contribution rates annually as part of a multi-year pension sustainability reform. Employers should build this schedule into payroll forecasting rather than treating the rate as fixed.

Year	Employer	Employee	Combined
January 2025	7.0%	6.0%	13%
January 2026 (current)	7.5%	6.5%	14%
January 2027	8.0%	7.0%	15%
January 2031 (target)	—	—	16%

The insurable earnings ceiling

NIS contributions apply only up to a maximum insurable earnings ceiling — earnings above that threshold are not subject to further NIS deduction. This ceiling is reviewed periodically by the NIS Board and can change independently of the contribution rate.

Why the rate is increasing

Grenada's NIS Board introduced the phased increase to strengthen the long-term sustainability of the pension fund amid an aging population and rising benefit payouts. Employers can expect a small increase each January through 2031, after which the rate is expected to stabilise.

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Will the NIS rate in Grenada increase again?

Yes. The rate rises on a published annual schedule, moving from 14% in 2026 toward a 16% target by 2031. Payroll systems and cost forecasts should be reviewed each January to pick up the new rate.

Is there a cap on NIS contributions in Grenada?

Yes. Contributions are calculated only on insurable earnings up to the NIS maximum insurable earnings ceiling. Once an employee's earnings exceed that ceiling, no further NIS is deducted on the excess.