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$249/month
$49/month
2% of gross salary / month
Hiring in Grenada can be a great move for businesses that are looking to grow. This Caribbean island nation has a population of about 126,000 people and a literacy rate of approximately 99%, which means it is a country made up of a well-educated workforce. Grenada’s economy is mainly driven by tourism, but is also well known for their agriculture, especially in their export of spices such as nutmeg.
The government has created a friendly environment for new businesses that are looking to enter into the country. According to recent reports, Grenada is becoming an attractive destination for investment due to its stable political climate and newly implemented supportive economic policies.
When hiring in Grenada, it’s important to understand the local labor market and legal requirements. This is where an Employer of Record (EOR) can help. An EOR handles the administrative and legal areas of employment, making it easier for you to focus on finding the right talent. They ensure compliance with local laws and regulations, so you can hire quickly without any of the usual hassles.
Hire in Grenada, and pay employees through our platform or app.
Our Grenada EOR solution is the most affordable on the market.
Fast Grenada onboarding, hire in as little as 24 hours.
We draft compliant Grenada labor contracts.
We manage all Grenada mandatory benefits.
It doesn’t stop with Grenada — we hire employees globally.
A Grenada Employer of Record is a third-party company that handles the legal and administrative responsibilities of hiring workers in Grenada on behalf of your business. This means the EOR takes care of payroll, taxes, benefits, and compliance with local labor laws. They become the official employer for your workers, while you retain control over their daily tasks and direction. This setup allows you to hire local talent without needing to set up a legal entity in Grenada, making the process smooth and hassle-free.
It is important to note that the terms “Employer of Record” and “Professional Employer Organization” (PEO) are often used interchangeably and mean the same thing. Both refer to companies that manage HR tasks for other businesses. By using an EOR or PEO, you can focus on your main business activities while they handle the complexities of local employment laws and regulations. This makes expanding your team in Grenada a much easier process.
Using a Grenada Employer of Record offers many different benefits such as:
Horizons stands out as a Grenada EOR through:
One of the principal reasons for engaging an EOR in Grenada is to ensure full compliance with Grenada’s employment laws. Here we explain in detail how a Grenada EOR ensures:
In Grenada, employment contracts usually come in two main types: permanent and fixed-term. Permanent contracts are for ongoing roles with no set end date, and usually provide stability and long-term benefits like health insurance and retirement plans. Fixed-term contracts are for specific durations or projects, and clearly outline the length of the employment period. These contracts are useful for seasonal work or special projects and may not offer the same benefits as permanent ones. Both types of contracts must comply with local labor laws to properly protect the rights of both the employer and the employee.
No probationary period.
At completion of the project.
Not applicable
Typically up to 3 months
30 days
Not applicable
Typically up to 3 months
30 days
Not required but may be entitled based on their length of service and contract terms.
Standard working hours in Grenada are typically 40 hours per week for full-time employees, usually spread over five days. Most businesses operate from Monday to Friday, with each workday usually lasting eight hours. Employees are entitled to a one-hour lunch break. Employers must ensure that employees do not exceed the maximum working hours, including overtime, which should be compensated at a higher rate, usually 1.5 times the regular hourly wage. Also, in most situations employees must have at least one full day off each week.
150% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
In 2025, Grenada will observe several public holidays. In most cases, employees are entitled to these days off with pay. If they work on a public holiday, they must be compensated at a higher rate, usually double their regular pay.
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 7 Feb 2025 | Independence Day |
| 18 Apr 2025 | Good Friday |
| 21 Apr 2025 | Easter Monday |
| 1 May 2025 | Labour Day |
| 9 June 2025 | Whit Monday (Pentecost Monday) |
| 19 Jun 2025 | Corpus Christi |
| 4 Aug 2025 | Emancipation Day |
| 11 Aug to 12 Aug 2025 | Carnival Day |
| 19 Oct 2025 | National Heroes Day |
| 25 Oct 2025 | Thanksgiving Day |
| 25 Dec 2025 | Christmas Day |
| 26 Dec 2025 | Boxing Day |
Employees in Grenada are entitled to paid time off, which includes vacation leave and public holidays. Full-time employees typically earn a minimum of 14 days of paid vacation per year after completing one year of service. PTO policies should be clearly outlined in the employment contract, explaining how leave is accrued and the process for requesting time off.
no leave entitlement
14 days of paid leave annually
14 days of paid leave annually
14 days of paid leave annually
Sick leave in Grenada allows employees to take time off when they are ill without losing pay. Full-time employees are usually entitled to at least 14 days of paid sick leave per year. To qualify for paid sick leave, employees typically need to provide a medical certificate if they are absent for more than two consecutive days.
(percentage of regular wages owed to the employee)
no leave entitlement
14 days of paid leave annually
14 days of paid leave annually
14 days of paid leave annually
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Female employees are entitled to 14 weeks of maternity leave. During maternity leave, employees are usually paid at least 50% of their regular salary. This is subject to the provisions of the employment contract and any applicable collective agreements.
Fathers are typically entitled to 5 days of paternity leave around the time of the birth of the child. This is intended to support the mother and bond with the newborn.
Annual leave gives employees in Grenada time off away from work responsibilities. Full-time employees are entitled to a minimum of 14 days of paid annual leave each year after completing one year of service. Employers can choose to offer more, but 14 days is the legal minimum. Annual leave should be scheduled in advance and mutually agreed upon by both the employer and employee. Some companies may allow unused leave to be carried over to the following year, depending on their policies.
Termination of employment in Grenada must follow local labor laws to ensure complete fairness. Employers must provide notice or payment in lieu of notice, with the notice period depending on the employee’s length of service. For employees with less than one year of service, the notice period is almost always one week. For anyone with longer service, the notice period increases. Severance pay is required for employees terminated without cause, generally amounting to one week’s pay for each year of service. Employers must also provide a written reason for the termination and follow due process to ensure fairness.
Social security is essential for funding various social benefits, including pensions, sickness benefits, and other welfare programs. The total contribution to the NIS amounts to 10% of an employee’s gross salary.
Foreign workers are required to contribute to the NIS just like local employees. They must pay 5% of their gross salary.
Foreign workers who contribute to the NIS are eligible for the same benefits as Grenadian workers, including pensions, sickness benefits, maternity benefits, and invalidity benefits, provided they meet the required contribution periods and eligibility criteria.
The income tax system is straightforward and applies to both residents and non-residents. Income up to EC$ 24,000 are taxed at 10% and anything over is taxed at 30%.
Both residents and non-residents are subject to income tax on income earned within Grenada. Non-residents are taxed only on their Grenadian-source income.
Grenada provides universal health care through public health facilities. This means that basic health services, including hospital visits, surgeries, and general medical care, are available to all residents. Several local and international insurance companies offer private health insurance plans in Grenada. These plans may cover additional services such as private hospital rooms, elective procedures, and enhanced medical care.
In Grenada, compensation laws ensure that employees receive fair pay for their work. The minimum wage is currently set at no less than EC$1,200 per month of EC$60 per day. Employers are required to pay wages on a regular basis, typically bi-weekly or monthly. Overtime work must be compensated at a higher rate, usually 1.5 times the regular hourly wage. There are also very strict laws against wage discrimination, ensuring that employees receive equal pay for equal work regardless of their gender or any other factors.
Unlike some other countries, Grenada does not commonly practice the 13th month salary. Instead, employers may offer performance bonuses or other incentives based on the company’s policies. These bonuses are usually tied to the employee’s performance or the company’s profitability. While not mandatory, offering bonuses can be a great way to motivate employees and reward them for their hard work.
In Grenada, social security contributions are mandatory for both employers and employees. These contributions are managed by the National Insurance Scheme (NIS) and provide a great deal of benefits, including pensions, unemployment insurance, and health care. Employers contribute a percentage of the employee’s salary to the NIS, while employees also contribute a portion of their wages. The percentage of contributions will gradually increase each year until it reaches 16% in 2031.
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An EOR in Grenada makes sure your business follows all local labor laws by handling everything related to employment. They take care of drafting legal contracts, processing payroll, and managing taxes, making sure everything complies with Grenada’s regulations. The EOR stays updated on any changes in the law, so you don’t have to worry about keeping up with legal requirements. This makes sure that your business operates smoothly and legally, avoiding any potential fines or issues.
Using an EOR for hiring in Grenada offers many benefits. First, it simplifies the hiring process, allowing you to quickly bring on local talent without setting up a local entity. The EOR handles all the administrative tasks, like payroll, taxes, and benefits, so you can focus on running your business. Also, an EOR ensures that you comply with local labor laws, reducing the risk of legal problems. This makes expanding your team in Grenada easy and stress-free.
Holiday Schedule in Grenada [2025]
