Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
GIP £ (Gibraltar Pound)
Employer contributions
18% employer social insurance, capped at £56.22/week
Minimum wage
£8.75 GIP/hour (National Minimum Wage)
Payment frequency
Monthly
Tax year: July 1 to June 30
Capital
Gibraltar
Timezone
GMT (UTC+0)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~£5,244 GIP total
/month
For a gross salary of
£5,000 GIP gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
18% employer social insurance, capped at £56.22/week
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll → income tax/SI remittance → annual return by November 30
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
+
Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~£5,244 GIP total
Example gross salary
£5,000 GIP gross/month
~£3,400 GIP net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~£244 GIP SI (weekly cap)
Employer contributions on that salary
Employer contributions
18% employer social insurance, capped at £56.22/week
Employee contributions
~10% employee SI
Total cost above gross
~5% above gross at £5,000/month (contribution is capped)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~£3,500 GIP
Per month
Gibraltar
£4,000 - £7,000 GIP
~20%
Single city-state
Same as the national range
0%
Monthly gross. National average salary per year:
~£42,000 GIP
Minimum wage
£8.75 GIP/hour (National Minimum Wage)
Paid:
Hourly
Extra pay
Annual Bonus
Discretionary
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
17% (flat, Allowance Based System) or 10-29% (Gross Income Based)
Tax year:
Tax year: July 1 to June 30
Filing calendar
Monthly via payroll
Social security payments
November 30 (tax return)
Income tax
By December 31
Employee tax certificate
P11 Equivalent
November 30
Annual return
Income Tax Return
Late payment penalties
Late tax: 10% surcharge + interest; late SI: penalties
Who collects what
Income Tax Office
Income tax collection
Department of Employment
Social insurance and labor
Commissioner for Employment Rights
Employment rights enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
20 days
Public holidays
12 public holidays
Sick leave
Sick Leave
Employer: first 3 days; Social Insurance: from day 4
Maternity leave
18 weeks
100% via Social Insurance fund
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contract of Employment (Permanent)
Fixed term
Fixed-Term Contract
Independent contractor
Self-Employed
Collective agreements
Limited (CBA coverage)
Ending employment
Redundancy Pay
How it is calculated
Statutory minimum per Employment Act
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Incorrect Tax Regime Selection
Risk Level: HIGH
Gibraltar offers two personal tax systems: the Allowance Based System (ABS) and the Gross Income Based System (GIBS). Using the wrong system or failing to elect annually results in overpayment or underpayment.
Social Insurance Ceiling Misapplication
Risk Level: MEDIUM
Gibraltar social insurance contributions are capped at a maximum annual ceiling. Continuing to deduct beyond the ceiling, especially for well-paid finance sector workers, generates overpayment claims.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.