---
name: ky-payroll-social
description: "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."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/ky-payroll-social"
  jurisdiction: "KY"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# 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) 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 tax  _(PwC 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% employee percent  _(National Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law)_
- **Pension — employer share** — 5% of pensionable earnings percent  _(National Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law)_
- **Pension — employee share** — 5% of pensionable earnings (deducted by employer) percent  _(National Pensions Act (Cayman Islands) https://caymanresident.com/work/pension-requirements/cayman-pension-law)_
- **Maximum pensionable earnings (wage cap)** — CI$87,000 per year per employee CI$  _(National 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 Islands  _(National 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 deduction  _(National 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/)_

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## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `ky-payroll-social` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/ky-payroll-social. If neither is available, confirm every figure against the official source pages cited above before relying on it.