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.
A statutory minimum wage applies, around £11.60 per hour in 2024*, reviewed periodically.
Monthly payroll. There is no statutory 13th salary; bonuses are contractual.
Around 9 to 10 bank and public holidays a year.
A written statement of terms is expected. Probation is set by the contract, commonly three to six months.
The main employer cost is the social-insurance contribution of roughly 6.6% 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.
Paid annual leave is largely set by contract, commonly around four weeks plus public holidays*.
Maternity leave and a maternity allowance are provided through the social-insurance system.
Sickness benefit is available through social insurance, with company sick pay set by contract.
Parental and family leave are provided under local rules and contract terms.
Notice follows the contract and local minimums that scale with tenure, and unfair-dismissal protection applies after a qualifying period.
Statutory redundancy pay applies after a qualifying period of service*, on top of notice.
Set by the contract, with shorter notice during the period.
A contractor working like an employee can be treated as an employee, triggering statutory entitlements.
*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.