Grenada Severance Pay Calculator
Evaluate mandatory severance pay under Section 45 of the Grenada Employment Act. Computes tiered entitlements (1 week/yr for 1-5 yrs, 2 weeks/yr for 6-10 yrs, 3 weeks/yr thereafter), notice pay in lieu, and accrued vacation settlements.
Service & Compensation Inputs
Statutory threshold: Minimum 1 completed year required.
Severance Entitlement Calculation Matrix
| Service Tier (§ 45) | Years in Tier | Statutory Rate | Weeks Credited | Subtotal (EC$) |
|---|---|---|---|---|
| Total Statutory Severance Pay | 15.0 wks | EC$ 15,000.00 | ||
Grenada Employment Act Severance Provisions
Under the Grenada Employment Act (Cap. 89, Section 45), employees terminated on grounds of redundancy, reorganization, or insolvency of the employer are entitled to statutory severance pay according to strict tiered schedules:
- Eligibility: An employee must complete at least one (1) continuous year of service with the employer to qualify for severance pay.
- Years 1 through 5: One (1) week's basic pay for each completed year of service.
- Years 6 through 10: Two (2) weeks' basic pay for each completed year of service in this tier.
- Years 11 and Beyond: Three (3) weeks' basic pay for each completed year of service exceeding 10 years.
- Notice Period & Leave: Under Section 42, employers must provide statutory notice (generally 1 month for salaried staff or staff with over 5 years service) or compensation in lieu of notice, plus payment for all earned, untaken vacation leave.
Frequently Asked Questions
Is severance pay taxable in Grenada?
Statutory severance payments made under the Employment Act are generally exempt from PAYE income tax as capital compensation for loss of employment.
Does an employee get severance if they resign voluntarily?
No. Voluntary resignation does not entitle an employee to statutory severance pay unless the resignation constitutes constructive dismissal under the Act.
What is the minimum notice period required before termination?
Under Section 42 of the Employment Act, notice periods range from 1 week (during probation) up to 1 month for continuous employment exceeding 1 year.
How is a week's pay calculated for monthly staff?
A week's basic pay is calculated by multiplying monthly pay by 12 and dividing by 52 (or monthly salary divided by 4.3333).
Can an employer deduct loan balances from statutory severance?
Deductions from severance are strictly regulated under Section 49 and are only permissible if authorized by law or explicitly consented to in writing by the employee.
📊 Grenada Inland Revenue Division (IRD) & NIS Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (XCD) |
|---|---|
| Primary Net / Statutory Payable Amount | EC$ 0.00 |
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.