Grenada NIS Guide: EE 4%, ER 5%, Cap XCD 5,000/month 2026
Grenada's National Insurance Scheme (NIS) requires contributions from both employees and employers. The employee share is 4% of gross salary, and the employer share is 5%. Contributions are capped at a monthly insurable earnings ceiling of XCD 5,000. Here is how NIS contributions work in 2026.
National Insurance contributions in Grenada fund the social security system including old-age pensions, disability benefits, health insurance, and other social protection programs. The system is administered by the National Insurance Scheme (NIS) office. Contributions are mandatory for all employed individuals and self-employed persons. The tax year follows the calendar year. Personal income tax overview →
Real-world example: An employee with a gross monthly salary of XCD 4,000. Employee deduction: 4% = XCD 160. Employer contribution: 5% = XCD 200. Total NIS contribution: XCD 360. For a salary of XCD 8,000/month, the cap of XCD 5,000 applies: employee pays 4% on XCD 5,000 = XCD 200. Employer pays 5% on XCD 5,000 = XCD 250. Earnings above XCD 5,000 are not subject to NIS contributions. Pension system guide →
Contribution Rates 2026
- Employee — NIS (4%): Funds the national insurance scheme (pension, disability, sickness, maternity)
- Employer — NIS (5%): Employer contribution to the national insurance scheme
- Self-employed — NIS (8%): Combined contribution for self-employed individuals (4% EE + 4% ER equivalent)
Total combined contribution: 9% of gross salary (up to the cap). The cap of XCD 5,000 monthly insurable earnings means that earnings above this threshold are not subject to additional NIS contributions. This cap is reviewed periodically by the NIS board.
Who Must Pay
- Employees: All employed individuals under an employment contract must contribute. Deductions are made by the employer and remitted to NIS
- Employers: All registered businesses employing staff must pay employer contributions in addition to remitting employee contributions
- Self-employed: Self-employed individuals and sole proprietors must register and pay NIS contributions at the self-employed rate of 8%
- Voluntary contributors: Unemployed individuals and others may make voluntary contributions to maintain pension eligibility
Benefits Covered
- Old-age pension: Retirement pension payable from age 60 (with at least 10 years of contributions for minimum, 35 years for full pension)
- Disability pension: For individuals unable to work due to disability
- Survivor's pension: Benefits for dependents of deceased contributors
- Sickness benefit: Temporary incapacity benefit for employees unable to work due to illness
- Maternity benefit: Paid maternity leave for eligible female contributors
- Funeral grant: Lump sum payment towards funeral expenses
- Employment injury: Benefits for work-related injuries and occupational diseases
Compliance and Reporting
Employers must register all employees with the NIS before work begins. Monthly contribution declarations and payments are due by the 15th of the following month. Employers must maintain records of all contributions for 6 years. Failure to register employees or remit contributions results in penalties, interest, and potential legal action. The NIS conducts regular compliance audits.
Can expatriates opt out of Grenadian NIS?
Expatriates working in Grenada are generally subject to Grenadian NIS contributions. However, if Grenada has a bilateral social security agreement with the expatriate's home country, they may remain covered by their home system. Grenada has social security agreements with CARICOM member states under the CARICOM Agreement on Social Security.
What happens if an employer fails to pay contributions?
Non-payment or late payment of NIS contributions incurs interest at 1% per month and penalties. The NIS can enforce collection through legal proceedings, asset seizure, and court orders. Directors may be personally liable for unpaid contributions.