Source-cited draft: payroll & social contributions for Cayman Islands (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
PAYE / payroll income tax withholding
None — there is no income tax, so no PAYE withholding from wagesPwC Worldwide Tax Summaries — Cayman Islands (Individual) https://taxsummaries.pwc.com/cayman-islands/individual/taxes-on-personal-income
State social-security contribution
None — there is no government social-security or national-insurance payroll taxPwC Worldwide Tax Summaries — Cayman Islands (Individual — Other taxes) https://taxsummaries.pwc.com/cayman-islands/individual/other-taxes
Mandatory pension contribution (total)
10% of pensionable earnings, generally split 5% employer / 5% employeeNational Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law
Pension — employer share
5% of pensionable earningsNational Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law
Pension — employee share
5% of pensionable earnings (deducted by employer)National Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law
Maximum pensionable earnings (wage cap)
CI$87,000 per year per employeeNational Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law
Pension eligibility
All employees aged 18–65 must be enrolled; non-Caymanian employees become pensionable after 9 months' continuous employment in the IslandsNational Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law
Pension remittance deadline
Contributions due by the 15th of the month following the month of deductionNational Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law
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) https://caymanresident.com/work/pension-requirements
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) https://www.bizlatinhub.com/labour-law-in-the-cayman-islands/
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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.
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Other Cayman Islands computations in the OpenAccountants Tax Library.