Guide to employment, payroll and benefits in

Cayman Islands

Rivermate offers complete payroll, benefits and compliance services for

Cayman Islands

01. Overview

Last updated: 

August 19, 2021

Cayman Islands Dollar
George Town
Ease of doing business
GDP growth

02. Grow your team in

Cayman Islands

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Cayman Islands

, particularly if you don't have established local relationships. You can hire employees in

Cayman Islands

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

In the western Caribbean Sea, the Cayman Islands are a self-governing British Overseas Territory. The three islands of Grand Cayman, Cayman Brac, and Little Cayman, which are situated to the south of Cuba and northeast of Honduras, between Jamaica and Mexico's Yucatán Peninsula, make up the 264-square-kilometer area. The capital city is George Town, which is located on Grand Cayman, the largest of the three islands. The Cayman Islands are part of both the Western Caribbean Zone and the Greater Antilles in terms of geography. International companies and affluent individuals consider the territory to be a big world offshore financial haven.

04. Public holidays

05. Types of leave

Paid time off

Employees with up to four years of experience are entitled to two weeks of paid voluntary leave. For up to ten years of service, this rises to three weeks. This rises to four weeks after ten years.

Public holidays

New Year’s DayNational Heroes’ DayAsh WednesdayGood FridayEaster MondayDiscovery DayQueen’s BirthdayConstitution DayRemembrance DayChristmas DayBoxing Day

Sick days

Employees are entitled to ten days of entirely paid maternity leave, and after three days of absence, they must have a medical certificate.

Maternity leave

After a year of service, female workers are entitled to 12 weeks of maternity leave, which is prorated if they have served less than a year. The first 20 days was entirely charged, followed by a half-pay reminder. They will decide how much time off they can take before and after the deadline. Maternity leave is paid for by the company.For an infant under the age of three, they are often entitled to nine weeks of adoption leave.

Paternity leave

There is no statutory paternity leave in the Cayman Islands laws.

Parental leave

Other than the already mentioned terms regarding maternity and paternity leaves, there are no other provisions regarding parental leave in the Cayman Islands.

Other leave

06. Employment termination

Termination process

Employers have the option of terminating employees upon the expiration of their fixed-term contract or by providing notice. When an employee commits misbehavior that is not severe enough to justify dismissal, the employee may get a written warning; if the employee commits misconduct again within a year, the employer may terminate the employee's employment. If an employee believes their dismissal was unjust, they may submit a complaint with the company's director within 90 days after the dismissal, and a labor tribunal will evaluate if the dismissal was justified.

Notice period

A month's notice is typically necessary.

Severance pay

Severance pay is paid to employees with one year of service. Pay is one week for each year of service, up to a maximum of 12 weeks.

Probation period

The probation period is capped at six months and can be extended once. However, it can be terminated at any time.

07. Working hours


The standard workweek is 45 hours long and has a daily maximum of nine hours. Each week, employees receive a 24-hour rest period and a 30-minute break after five hours of work.


Overtime is typically compensated at a rate that is a percentage higher than the regular rate.

08. Minimum wage


The National Minimum Basic Wage is 6.00 Cayman Islands Dollars per hour for the majority of employees, and 4.50 Cayman Islands Dollars per hour for service employees of an employer with a registered gratuities scheme.

09. Employee benefits


Employers are required to provide Standard Health Insurance to their employees, and the expense is shared equally by the employees.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Cayman Islands

to hire a team takes time, money, and effort. The labor law in

Cayman Islands

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Cayman Islands

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Cayman Islands

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Cayman Islands

via our Employer of Record / PEO solution.

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