Cayman Islands Payroll & Social Contributions

Payroll, pensions and social obligations

There is no income tax withholding (PAYE) and no state social-security tax in the Cayman Islands. Employers must instead enrol eligible workers in a private pension plan and provide approved health insurance; these are the only mandatory payroll-related contributions.

• PAYE / payroll income tax withholding — None — there is no income tax, so no PAYE withholding from wages (PwC Worldwide Tax Summaries — Cayman Islands (Individual))
• State social-security contribution — None — there is no government social-security or national-insurance payroll tax (PwC Worldwide Tax Summaries — Cayman Islands (Individual — Other taxes))
• Mandatory pension contribution (total) — 10% of pensionable earnings, generally split 5% employer / 5% employee percent (National Pensions Act (Cayman Islands))
• Pension — employer share — 5% of pensionable earnings percent (National Pensions Act (Cayman Islands))
• Pension — employee share — 5% of pensionable earnings (deducted by employer) percent (National Pensions Act (Cayman Islands))
• Maximum pensionable earnings (wage cap) — CI$87,000 per year per employee CI$ (National Pensions Act (Cayman Islands))
• Pension eligibility — All employees aged 18–65 must be enrolled; non-Caymanian employees become pensionable after 9 months' continuous employment in the Islands (National Pensions Act (Cayman Islands))
• Pension remittance deadline — Contributions due by the 15th of the month following the month of deduction (National Pensions Act (Cayman Islands))
• Mandatory health insurance — Employers must provide at least standard health insurance (SHIC) from an approved insurer for each eligible employee; premium is generally shared, with the employer paying at least 50% ((employer share approx — confirm)) (Health Insurance Act (Cayman Islands))
• Work-permit fees (employer cost) — Employers of non-Caymanian staff pay annual work-permit fees that vary by occupation and sector; these are a payroll-related government cost (not a tax on wages) (Immigration (Transition) Act (Cayman Islands))