Pension contributions
Employer and employee pension contributions, calculated automatically against the applicable earnings range and shown on the payslip.
TropicHR
Payroll Software for the Cayman Islands
No payroll income tax in the Cayman Islands - but pension and health insurance contributions are mandatory. TropicHR calculates both automatically.
The Cayman Islands has no payroll income tax, but it is not statutory-free: employers must make mandatory pension contributions, split between employer and employee, and provide mandatory group health insurance with the employer covering at least half the premium. Neither is optional, and neither is a simple percentage-of-salary calculation to get right by hand. TropicHR calculates both automatically and shows the result on every payslip.
Cayman Islands statutory obligations
No income tax – two mandatory obligations instead.
Rules are territory-aware, versioned data rather than hard-coded logic, so an update is a data change, not a software release.
Health insurance
The employer’s share of the mandatory group health insurance premium, calculated and included in every payroll run.
No income tax to reconcile
With no payroll income tax, the calculation surface is smaller – but the pension and health insurance obligations still need to be right every period.
A full calculation trace
Every statutory line on every payslip shows the base and rate used to produce it – not just a final number.
Beyond statutory
Built for multi-currency, multi-entity Caribbean operations.
Weekly, fortnightly, semi-monthly or monthly pay groups, a two-person approval on every run, payslip PDFs and a bank payment file from the same approved record, and an immutable, field-level audit log. Accounting firms and payroll bureaus can run several client companies from one workspace with strict separation between each.
Questions
Common questions about payroll in the Cayman Islands.
Does Cayman Islands payroll need income tax calculated?
No – the Cayman Islands has no payroll income tax. TropicHR calculates the mandatory pension and health insurance contributions that apply instead.
Does TropicHR handle Cayman pension and health insurance contributions?
Yes. Both the employer and employee pension contributions, and the employer’s share of the mandatory health insurance premium, are calculated automatically and shown on the payslip.
Can employees see their own payslips?
Yes, through a separate self-service portal that also shows year-end certificates, timesheets and leave requests.
Can I migrate from my current payroll provider?
Yes. Import your history and run a parallel period alongside your existing system – a reconciliation report compares every employee before you switch over.
Does TropicHR support weekly, fortnightly, semi-monthly and monthly pay?
Yes, a pay group can run on any of those schedules, and an employee’s compensation basis is handled independently of how often their pay group runs.
Get started
Run your next Cayman Islands payroll with TropicHR.
Essentials starts at US$39 a month for up to 10 employees.