Payroll
/
Guernsey
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
GBP GBP / GGP (Guernsey Pound at par)
Employer contributions
~6.8% employer Social Insurance
Minimum wage
GBP 11.50/hour (minimum wage 2024)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Saint Peter Port
Timezone
GMT (GMT+0) / BST (GMT+1)
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
~GBP 7,476 total
/month
For a gross salary of
GBP 7,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~6.8% employer Social Insurance
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll - Social Insurance by month-end - ETI - annual May return
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
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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
~GBP 7,476 total
Example gross salary
GBP 7,000 gross/month
~GBP 5,124 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~GBP 476 SI
Employer contributions on that salary
Employer contributions
~6.8% employer Social Insurance
Employee contributions
~7.4% employee Social Insurance + income tax (flat 20%)
Total cost above gross
~6.8% above gross (Social Insurance)
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
~GBP 4,500
Per month
Saint Peter Port
GBP 5,000 - 16,000
~40%
Saint Sampson
GBP 4,000 - 12,000
~10%
Monthly gross. National average salary per year:
~GBP 54,000
Minimum wage
GBP 11.50/hour (minimum wage 2024)
Paid:
Hourly
Extra pay
Annual Bonus
Discretionary; finance sector: common
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
20% flat income tax rate
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by last day
Social security payments
May 31 (annual income tax return)
Income tax
By April 30
Employee tax certificate
Annual ETI Certificate
May 31
Annual return
Annual Income Tax Return (ETI)
Late payment penalties
Late SI: penalty; late ETI: 5% + interest
Who collects what
Revenue Service
Income tax (ETI)
Guernsey Social Insurance
Social insurance
Employment and Equal Opportunities Service
Labour law
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
10 days/year (minimum)
Public holidays
~9 public holidays
Sick leave
Sick Leave
Employer statutory sick pay
Maternity leave
18 weeks maternity
Guernsey maternity allowance
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
No general CBA
Ending employment
Redundancy Pay
How it is calculated
Per Employment Protection (Guernsey) Law 1998
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.
Bailiwick Multi-Island Jurisdiction
Risk Level: HIGH
The Bailiwick of Guernsey includes Guernsey, Alderney, Sark, and Herm, each with some administrative autonomy. Employers with workers on Alderney or Sark face different registration requirements.
Finance Sector Regulatory Employment Conditions
Risk Level: HIGH
Guernsey's Guernsey Financial Services Commission (GFSC) imposes conduct requirements on finance sector employers including fit-and-proper person checks and employment contract provisions.
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$49
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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.