Guernsey is a stable Channel Island finance centre with a light-touch, contract-led employment regime and no VAT. All-in employer cost runs around 1.07x the gross salary. Here is what to know before your first Guernsey hire.
Employment is largely contract-based, with a smaller body of statute than the UK, and social-insurance contributions administered locally. Written terms and a clear contract carry most of the weight.
The main employer cost is the social-insurance contribution of roughly 7% of earnings up to a cap.
Employer social-insurance contributions apply up to an upper earnings limit, so higher salaries carry a smaller effective percentage.
Guernsey levies a flat 20% income tax plus employee social insurance, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Guernsey employment contract, payroll, and social insurance, handled. One invoice, flat $399 per month.