
Lucas Botzen
Founder & Managing Director
Last updated:
October 7, 2025
What is an Employer of Record in Grenada?
View our Employer of Record servicesAn Employer of Record (EOR) in Grenada is a company that legally hires and pays employees on your behalf. This means you can build a team in Grenada without the cost and complexity of setting up your own local entity. The EOR takes on all the administrative and legal responsibilities of employment, from payroll and taxes to benefits and compliance with local labor laws. You manage your employees' day-to-day work, while the EOR handles the HR and legal paperwork. Providers like Rivermate offer these services to simplify your global expansion.
How an Employer of Record (EOR) Works in Grenada
Using an EOR in Grenada simplifies the process of hiring talent. Here is a step-by-step look at how it works:
- Hire Your Team: You find the talent you want to hire in Grenada. The EOR then legally hires them onto its own payroll.
- Employment Contracts: The EOR drafts employment contracts that comply with Grenada's Employment Act. This ensures all legal requirements are met from the start.
- Onboarding: The EOR manages the entire onboarding process for your new employees.
- Payroll and Taxes: The EOR processes payroll, ensuring your employees are paid accurately and on time. They also calculate and withhold all necessary taxes and social contributions, remitting them to Grenada's Inland Revenue Division (https://www.finance.gd/index.php/ird).
- Benefits Administration: The EOR handles employee benefits, such as health insurance and retirement plans, making sure they are competitive and compliant with local standards.
- Ongoing Compliance: The EOR stays up-to-date with any changes in Grenada's labor laws to keep your business compliant and reduce risk.
Why use an Employer of Record in Grenada
Using an EOR in Grenada allows you to access local talent and enter a new market quickly and efficiently. It removes the significant administrative burden and legal risks associated with international hiring.
- Avoid Establishing a Legal Entity: You can hire employees in Grenada without the time-consuming and expensive process of setting up a local company.
- Ensure Legal Compliance: An EOR has local expertise and ensures you comply with all of Grenada's labor laws and regulations, minimizing your legal risks.
- Save Time and Money: By outsourcing HR and administrative tasks, you save on the costs of setting up a local entity and hiring in-house staff to manage these functions.
- Focus on Your Business: With the EOR handling the complexities of employment, you can focus on your core business operations and managing your team's performance.
- Attract Top Talent: An EOR can help you offer competitive benefits packages that are compliant with local standards, making it easier to attract and retain the best employees in Grenada.
Responsibilities of an Employer of Record
As an Employer of Record in Grenada, Rivermate is responsible for:
- Creating and managing the employment contracts
- Running the monthly payroll
- Providing local and global benefits
- Ensuring 100% local compliance
- Providing local HR support
Responsibilities of the company that hires the employee
As the company that hires the employee through the Employer of Record, you are responsible for:
- Day-to-day management of the employee
- Work assignments
- Performance management
- Training and development
Costs of using an Employer of Record in Grenada
Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Grenada includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Grenada.
Employ top talent in Grenada through our Employer of Record service
Book a call with our EOR experts to learn more about how we can help you in Grenada







Book a call with our EOR experts to learn more about how we can help you in Grenada.
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Hiring in Grenada
Hiring in Grenada is straightforward. The legal framework protects both employers and employees. The main legislation is the Labour Act, which sets the rules for employment relationships. This includes everything from contracts to working hours and termination. Grenada's laws aim for fair working conditions for everyone.
Employment contracts & must-have clauses
While you are not legally required to have a written employment contract in Grenada, it is highly recommended. A written contract provides clarity and helps prevent disputes.
There are two main types of employment contracts in Grenada:
- Indefinite-term contracts: These are for permanent, ongoing roles.
- Fixed-term contracts: These have a specific end date or are for a particular project.
Your employment contracts should include these essential clauses:
- Names and addresses of both the employer and employee
- Date the employment starts
- Job title and a description of the work
- Place of work
- Working hours
- Salary, payment frequency, and method
- Holiday and paid leave entitlement
- Sick leave provisions
- Notice period for termination
Probation periods
It is common to include a probationary period in employment contracts, especially for indefinite-term roles. This period allows both you and the new employee to see if the arrangement is a good fit.
- Unskilled workers: The probation period should be no more than one month.
- Other workers: The probation period is typically up to three months.
You can terminate a contract during the probation period with a shorter notice period, as outlined in the employment contract.
Working hours & overtime
The standard workweek in Grenada is 40 hours, based on an 8-hour day, 5 days a week.
- Overtime: Any work done beyond the standard 40 hours is considered overtime.
- Overtime pay: Overtime is typically paid at 1.5 times the employee's regular hourly rate. For work on Sundays and public holidays, the rate is usually double the regular rate.
- Rest breaks: Employees who work for 5 hours or more are entitled to a meal break of at least one hour.
Public & regional holidays
Grenada observes several public holidays throughout the year. Your employees are entitled to paid leave on these days.
Here is a list of public holidays in Grenada for 2024:
Date | Holiday |
---|---|
January 1 | New Year's Day |
February 7 | Independence Day |
March 29 | Good Friday |
April 1 | Easter Monday |
May 1 | Labour Day |
May 20 | Whit Monday |
May 30 | Corpus Christi |
August 5 | Emancipation Day |
August 12 | Carnival Monday |
August 13 | Carnival Tuesday |
October 19 | National Heroes Day |
October 25 | Thanksgiving Day |
December 25 | Christmas Day |
December 26 | Boxing Day |
Hiring contractors in Grenada
You can hire independent contractors in Grenada for project-based work or to access specialized skills. This can be a flexible and cost-effective way to scale your team.
An independent contractor is self-employed and provides services to your business. They are not considered employees and are not covered by the same labor laws. This means they are responsible for their own taxes and are not entitled to benefits like paid leave or severance pay.
It is crucial to correctly classify your workers. If a worker is misclassified as an independent contractor when they are actually an employee, you could face fines and penalties. An Employer of Record (EOR) can help you mitigate this risk. An EOR can help you hire and pay contractors compliantly, ensuring that the relationship is correctly classified and that all local laws are followed.

Compensation and Payroll in Grenada
Understanding compensation in Grenada means looking at local standards, legal requirements, and common practices. To attract and keep good people, you need to offer competitive and compliant salary packages. Salaries can vary a lot depending on the industry, the employee's role and skills, and the general economic situation. Key sectors like tourism, financial services, and construction all have different pay scales.
Payroll cycles & wage structure
The most common payroll cycle in Grenada is monthly. Most companies pay their employees once a month, usually near the end of the month. While some businesses in construction or hospitality might pay every two weeks, monthly pay is the standard. Payments are typically made by direct bank transfer.
Your wage structure will depend on your industry and the specific jobs you are hiring for. For example, roles in finance and IT often pay more than roles in tourism or agriculture.
Overtime & minimums
When employees work more than the standard 40-hour work week, you must pay them overtime. The overtime rate is one and a half times the normal hourly wage. If an employee works on a Sunday or a public holiday, the rate increases to double the normal wage.
Grenada has different minimum wages for different types of work. The rates are set by the government to ensure a basic standard of pay.
Here are some examples of hourly minimum wages:
- General Workers: XCD 6.00
- Security Guards: XCD 7.00
- Agricultural Workers: XCD 5.50
- Domestic Workers: XCD 5.00
Employer taxes and contributions
As an employer, you are responsible for contributing to the National Insurance Scheme (NIS) for each of your employees. This fund covers pensions, sickness, and other benefits. You must also withhold income tax from employee salaries.
Contribution | Rate | Notes |
---|---|---|
National Insurance Scheme (NIS) | 6% of gross earnings | Capped at monthly insurable earnings of EC$5,000. |
Employee taxes and deductions
Employees also contribute to the National Insurance Scheme. You will deduct this from their pay. You are also responsible for withholding Pay As You Earn (PAYE) income tax and sending it to the tax authorities.
Deduction | Rate | Notes |
---|---|---|
National Insurance Scheme (NIS) | 4% of gross earnings | Capped at monthly insurable earnings of EC$5,000. |
Income Tax (PAYE) | 0% on annual income up to EC$36,000 | This is the tax-free threshold. |
Income Tax (PAYE) | 28% on annual income above EC$36,000 | This rate applies to the portion of income that exceeds the threshold. |
How an Employer of Record, like Rivermate can help with payroll taxes and compliance in Grenada
An Employer of Record (EOR) manages monthly payroll calculations, employer contributions, and tax filings in-country on your behalf. Rivermate handles registrations, payslips, statutory reporting, and remittances to authorities so you stay compliant with local rules and deadlines—without setting up a local entity. Our specialists monitor regulatory changes and ensure correct rates, thresholds, and caps are applied to every payroll cycle.
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Benefits and Leave in Grenada
In Grenada, providing the right benefits and leave is key to attracting and keeping great talent. Understanding the local laws is the first step. This guide breaks down what you need to know about statutory leave, holidays, and supplemental benefits in Grenada.
Statutory Leave
Grenadian law requires employers to provide several types of leave.
- Annual Leave: After one year of continuous service, employees get a minimum of 14 days of paid annual leave. This increases to a minimum of three weeks (21 calendar days) after five years of service.
- Sick Leave: Employees are entitled to paid sick leave. To claim this, they usually need to provide a medical certificate, especially if they are absent for two or more consecutive days.
- Maternity Leave: Female employees are entitled to three months of paid maternity leave.
Public Holidays & Regional Holidays
Employees in Grenada get paid leave for national public holidays. If an employee works on a public holiday, they are typically paid at a premium rate, often double their regular pay.
Holiday | Date |
---|---|
New Year's Day | January 1 |
Independence Day | February 7 |
Good Friday | April 18 |
Easter Monday | April 21 |
Labour Day | May 1 |
Whit Monday | June 9 |
Corpus Christi | June 19 |
Emancipation Day | August 4 |
Carnival | August 11-12 |
National Heroes Day | October 19 |
Thanksgiving Day | October 25 |
Christmas Day | December 25 |
Boxing Day | December 26 |
Note: If a public holiday falls on a Sunday, the following Monday is usually observed as the holiday.
Typical Supplemental Benefits
Beyond the legal minimums, many employers in Grenada offer extra benefits to stay competitive.
Statutory Benefits | Non-Statutory (Supplemental) Benefits |
---|---|
National Insurance Scheme (NIS) Contributions | Private Health Insurance |
Severance Pay | Additional Paid Time Off |
Paid Public Holidays | Performance Bonuses |
Minimum Wage | Training and Development |
Standard Working Hours (40/week) | Transportation or Housing Allowances |
Paid Annual, Sick, and Maternity Leave | Life and Disability Insurance |
Supplementary Pension Plans |
The National Insurance Scheme (NIS) is a mandatory social security program. Both employers and employees contribute to it. The NIS provides benefits like retirement pensions, sickness benefits, and maternity benefits.
How an EOR Can Help with Setting Up Benefits
Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.
An EOR acts as the legal employer for your team in Grenada. This means they handle all the administrative and legal tasks related to employment.
Here is how an EOR can help:
- Compliance: An EOR ensures your benefits packages comply with all of Grenada's labor laws.
- Administration: They manage everything from payroll and tax withholding to NIS contributions.
- Expertise: You get access to local experts who understand the Grenadian benefits landscape. This helps you offer competitive packages that attract top talent.
- Simplicity: You avoid the need to set up a local entity, saving you time and money.
By partnering with an EOR, you can confidently build a talented team in Grenada while they handle the complexities of benefits and compliance.
How an Employer of Record, like Rivermate can help with local benefits in Grenada
Rivermate provides compliant, locally competitive benefits—such as health insurance, pension, and statutory coverages—integrated into one EOR platform. We administer enrollments, manage renewals, and ensure contributions and withholdings meet country requirements so your team receives the right benefits without added overhead.
Termination and Offboarding in Grenada
When employment ends in Grenada, you must follow specific rules. The process is designed to be fair to both you and your employee. You need a valid reason to terminate an employee, like issues with their performance or conduct, or because of your company's operational needs. You must follow correct procedures, which can include giving warnings for poor performance.
Notice periods
You must give your employees written notice before termination. The amount of notice depends on how long they have worked for you. You can also pay them in lieu of notice.
Length of Service | Minimum Notice Period |
---|---|
Less than 6 months | 1 week |
6 months to less than 5 years | 2 weeks |
5 years to less than 10 years | 4 weeks |
10 years or more | 6 weeks |
Severance pay
If you terminate an employee, you may need to pay them a termination allowance. This applies to employees who have completed at least one year of continuous service. The payment should be at least one week's wages for each full year they have worked for you. All final payments are due within seven days of termination.
How Rivermate handles compliant exits
Navigating employee exits can be complex. We handle the entire process to make sure everything is compliant with Grenada's labor laws.
- Documentation: We prepare and manage all necessary termination documents.
- Final Pay: We calculate and process all final wages, including any termination allowance, and accrued benefits.
- Guidance: We provide clear guidance to ensure a smooth and respectful offboarding process for both you and your employee.
We take care of the details so you can focus on running your business.
Visa and work permits in Grenada
Getting the right visas and work permits in Grenada is straightforward when you know the process. If you plan to hire someone to work in Grenada, they will need a work permit to be legally employed. The Grenadian government issues these permits to foreign nationals, typically for one year, to fill roles where local talent isn't available. You'll find that the process involves both the employee and the employer.
Employment visas & sponsorship realities
When you hire a foreign national to work in Grenada, they need a job offer from a Grenadian company. This is where an Employer of Record (EOR) comes in. An EOR in Grenada can legally hire and sponsor employees on your behalf, saving you the need to set up your own local entity.
Here’s what you can expect from an EOR:
- Visa Sponsorship: The EOR will sponsor the necessary work permits for your employees.
- Compliance: They ensure that you comply with all local labor laws.
- HR and Payroll: An EOR manages payroll, taxes, benefits, and other HR tasks.
Using an EOR is a practical way to hire in Grenada. It simplifies the process and ensures everything is handled correctly. The EOR takes on the legal responsibilities of an employer, allowing you to focus on managing your team.
To get a work permit, your employee will typically need to provide:
- A valid passport
- Passport-sized photos
- Proof of their qualifications and experience
- A police clearance certificate from their home country
- A job offer from a local employer
The processing time for a work permit can take several weeks, so it's best to start the application process well in advance.
Business travel compliance
For short-term business trips, the rules are more relaxed. Many nationalities can enter Grenada without a visa for up to three months.
Business activities you can typically do on a short-term visit include:
- Attending meetings and conferences
- Engaging in trade shows
- Conducting commercial activities
It is important that these short-term visits do not involve local employment. If the purpose of the trip is to work, a work permit is necessary. Visitors on a business trip may need to show proof of their business activities, such as an invitation letter from a company in Grenada.
Always check the latest visa requirements for the specific nationality of your traveler before they go. This ensures a smooth and compliant business trip.
How an Employer of Record, like Rivermate can help with work permits in Grenada
Navigating work permits can be complex and time‑sensitive. Rivermate coordinates the entire process end‑to‑end: determining the right visa category, preparing employer and employee documentation, liaising with local authorities, and ensuring full compliance with country‑specific rules. Our in‑country experts accelerate timelines, minimize refusals, and keep you updated on each milestone so your hire can start on time—legally and confidently.
Frequently asked questions about EOR in Grenada
About the author

Lucas Botzen
Lucas Botzen is the founder of Rivermate, a global HR platform specializing in international payroll, compliance, and benefits management for remote companies. He previously co-founded and successfully exited Boloo, scaling it to over €2 million in annual revenue. Lucas is passionate about technology, automation, and remote work, advocating for innovative digital solutions that streamline global employment.