Employment Cost Calculator for Saint Kitts and Nevis
Calculate your complete hiring costs for Saint Kitts and Nevis employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security (Main Scheme) | 5% | Employee earnings (up to XCD 6,500/month) |
| Employment Injury Benefits | 1% | Employee earnings (up to XCD 6,500/month) |
| Housing and Social Development Levy | 3% | Employee earnings |
| Severance Payments Fund | 1% | Employee earnings |
Filing & Compliance
- Employers must register with the Inland Revenue Department (IRD) for PAYE and with the Social Security Board.
- Monthly returns and remittances for PAYE and Social Security Levy are due by the 15th day of the month following the payroll month.
- Employers must submit annual reconciliation forms (e.g., P7 forms) summarizing total remuneration and taxes/contributions withheld.
In Saint Kitts and Nevis, employee tax deductions primarily consist of social security contributions. Notably, there is no personal income tax on salaries.
Social Security Contributions
Employees between 16 and 62 years old contribute 5% of their wages to social security. This deduction covers several benefits, including sickness, maternity, and employment injury. Wages subject to contribution include regular salary, overtime pay, bonuses (excluding December bonuses), allowances (like housing and cost of living), and other benefits paid in cash. Those under 16 or over 62 contribute 1%.
Employer Contributions
Employers also contribute to social security on behalf of their employees. The employer's contribution is an additional 5% of the employee's wages, plus 1% specifically for employment injury coverage, totaling 6%. This is paid alongside the employee's contribution.
Value Added Tax (VAT)
While not an employee deduction, the VAT rate has been reduced from 17% to 13% for the first half of 2025 (January 1 to June 30). This reduction affects the cost of goods and services and indirectly impacts employees' disposable income. As of today, February 5, 2025, this reduction is currently in effect. Please note that this is time-sensitive information and may change in the future.
Minimum Wage
The national minimum wage is set to increase to EC$500 per week starting July 1, 2025. This impacts employers' payroll calculations and the net pay received by minimum wage employees. This change is upcoming.
Other Taxes
Saint Kitts and Nevis does not have personal income tax, wealth tax, or inheritance tax. However, non-residents receiving dividends, interest, or royalties from sources within the country are subject to a 15% withholding tax. This does not apply to residents.
