Self Employed
A self-employed contributor is someone who is not in the employment of a registered employer, but is otherwise gainfully employed.
All self-employed persons are required by law to be registered with the NIS and to pay contributions. The contributions rate for a self-employed person is 13% of gross earnings. Self-employed persons over the age of 65 are required to pay 1% of gross earnings for employment injury benefit. The maximum earnings on which contributions are payable is $5,200.00 per month.
Effective July 1, 2023, new Self-employed regulations were introduced. Under these regulations, Self-employed persons can:
Choose to pay monthly or in lump sums annually.
- Pay any amount between $873 and $8,112 annually to qualify for all NIS benefits (including Sickness, Maternity, Unemployment and Employment Injury Benefits).
- To qualify for benefits the following year you it is mandatory to contribute in the current year (must contribute in 2025 to qualify for benefits in 2026).
- Enjoy the advantage of no penalties and interest for late payments.
- Make self-employed payments even when employed elsewhere. (provided that contribution payments amount to no more than $8,112 a year).
Self-employed persons must satisfy the following requirements:
- Be ordinarily resident in Grenada
- Be engaged in business for him/herself
To register as a self-employed person, visit any NIS office with the following documents:
- Certified birth certificate
- A valid picture ID
- Certified marriage certificate (if applicable)
FAQs
Self-employed persons can qualify for all the benefits offered by the NIS.
Contributors are entitled to claim as many times as they meet the qualifying conditions for a benefit.
The normal age is 16-65. However all employed persons regardless of age must register (this includes temporary and part-time workers and students with summer or part-time jobs). The contribution rate for person below or above the normal age is 1%. It is paid by the employer only.
That is the maximum salary on which NIS contributions must be deducted. Currently it is $5,200 for monthly paid workers. This includes:
- Overtime payment;
- Cost of living bonus;
- Commission on sales or similar payments;
- Gratuities
- Payments for night or shift-work
- Production bonus;
- Service charge
- Holiday pay etc.
The employee must present the following documents:
- An original certified birth certificate
- A valid picture ID
- An original certified marriage certificate (if applicable)
Under the CARICOM Reciprocal Agreement on Social Security, if a person works in more than one member country and paid sufficient contributions in each country to qualify for a pension then, each country is required to pay him a separate pension based on its local Regulations. However, if he did not pay sufficient contributions to qualify for a pension in each country, the contributions paid in each member country is combined to assist him/her in meeting the qualifying conditions for such a pension. If upon combining his contributions he qualifies for such a pension, each member country where he worked is required to pay a proportional amount of the pension payable. Grenada is a party to the CARICOM Reciprocal Agreement on Social Security,
Grenada also has a Reciprocal arrangement with the Canadian Social Security.