🇬🇩 Income Tax Act Cap. 149 · NIS Act Cap. 205

Grenada Salary PAYE Tax & NIS Calculator

Compute precise employee net pay and employer payroll liabilities under Grenada Inland Revenue Division (IRD) guidelines. Features statutory EC$ 3,000/mo tax-free threshold, 10% / 28% progressive brackets, and 5% NIS social security.

Monthly Net Pay EC$ 4,500.00 Take-home salary
PAYE Income Tax EC$ 250.00 Monthly withholding
Employee NIS (5%) EC$ 250.00 Capped at EC$ 250/mo
Employer Cost EC$ 5,250.00 Gross + 5% Employer NIS

Salary & Compensation Settings

PAYE Tax & NIS Deduction Schedule

Statutory Bracket / Tier Threshold (Monthly) Tax Rate Taxable Base Tax Withheld (EC$)
Total Monthly PAYE Tax Liability EC$ 200.00

Monthly vs Annual Payroll Summary

Component Monthly (EC$) Annualized (EC$) Effective % of Gross

Grenada Statutory Payroll & Tax Mechanics

Grenada payroll is administered jointly by the Inland Revenue Division (IRD) under the Income Tax Act (Cap. 149) and the National Insurance Scheme (NIS) under Cap. 205:

  • Statutory Tax-Free Allowance: Individual employees are entitled to an annual standard deduction of EC$ 36,000 (EC$ 3,000 per month). Income up to this threshold is entirely exempt from PAYE withholding.
  • 10% Bracket: Taxable income between EC$ 36,001 and EC$ 60,000 annually (the next EC$ 2,000 monthly between EC$ 3,000 and EC$ 5,000) is taxed at 10.0%.
  • 28% Top Marginal Bracket: Taxable income exceeding EC$ 60,000 annually (in excess of EC$ 5,000 monthly) is taxed at 28.0%.
  • National Insurance (NIS): Both employees and employers contribute 5.0% each on gross insurable earnings. The statutory maximum insurable ceiling is fixed at EC$ 5,000 monthly (EC$ 60,000 annually), yielding a maximum monthly employee deduction of EC$ 250.00.

Frequently Asked Questions

What is the personal income tax threshold in Grenada?

Under the Grenada Income Tax Act, every resident individual benefits from an annual personal allowance of EC$ 36,000 (EC$ 3,000 per month), which is completely tax-free.

What are the PAYE tax brackets in Grenada?

The first EC$ 36,000 is taxed at 0%. Income between EC$ 36,001 and EC$ 60,000 is taxed at 10%. Any income exceeding EC$ 60,000 is taxed at the top marginal rate of 28%.

What is the maximum NIS contribution for employees?

The maximum insurable earnings limit is EC$ 5,000 monthly. At the 5.0% employee rate, the maximum deduction is capped at EC$ 250.00 per month (EC$ 3,000 annually).

Does the employer pay matching NIS?

Yes. Employers must match employee contributions at 5.0%, bringing total NIS contributions to 10.0% of insurable earnings up to the monthly cap of EC$ 5,000.

Are bonuses and commissions subject to PAYE?

Yes, bonuses, commissions, and overtime pay are treated as ordinary employment remuneration and must be aggregated into monthly earnings for PAYE withholding.

📊 Grenada Inland Revenue Division (IRD) & NIS Matrix

Statutory Component / Legal Deduction Item Calculated Amount (XCD)
Primary Net / Statutory Payable Amount EC$ 0.00
MS

Engr. Muhammad Shahzad

Principal Financial Systems Architect & Eastern Caribbean & State of Grenada Fiscal Systems Lead

Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.

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