Your team is critical to your company’s success, and they deserve compensation and benefits that reflect national regulations. When building a compensation and benefits plan, you must be aware of the labor code and local standards to create an effective strategy.
Cayman Islands (UK) compensation laws
The current minimum wage in the Cayman Islands is KYD 6.00 per hour for most employees, but there are alternative requirements for commission-based employees and live-in domestic employees. Service employees who work under an employer with a registered gratuities scheme have a minimum wage of KYD 4.50.
Wages must be paid on a regular periodic schedule, and employees must receive payments no less than once a month. There is no income tax in the Cayman Islands, so employers do not need to deduct tax amounts from regular payments.
According to the Labour Act, employees must receive a series of benefits related to overtime pay and leave. Any hour that exceeds the standard 9-hour workday, or the 45-hour workweek, must be paid at the overtime rate of one-and-a-half times the employee’s standard rate.
Leave requirements include vacation time, public holidays, sick days, and maternity leave. Employees must receive two weeks of paid leave for the first four years of employment. Between four and 10 years, employees must receive three weeks. For all completed years exceeding 10, employees must receive four weeks of paid leave.
Employees must also receive their standard pay on public holidays if they have time off. Sick leave has no limitations on the number of days, but the employee must provide a doctor’s certificate when requested. Pay is only required for the first 10 days of sick leave.
Maternity leave must be at least 12 calendar weeks, leading up to and after the birth of the child. Employers must pay the employee’s full wages for the first 20 days. For the 20 days following, the wage is halved.
Cayman Islands (UK) benefits management
Abiding by the compensation and benefits laws is essential to compliance but offering the bare minimum may not be enough to stay competitive in the labor market. Adding fringe benefits and perks to your offerings can help your company stand out, making it easy to attract new talent. After building your team in the country, these additional benefits can also help improve retention rates and overall employee happiness:
- Company pension plans
- Flexible scheduling
- Tuition reimbursement
- Company cellphone
To develop your competitive benefits package, it’s helpful to research similar companies in the area. Commonly offered benefits will inform you about the expectations of local candidates. You should also regularly update your packages based on employees’ evolving priorities. Encourage employee feedback so your team can help you develop your packages over time.
Restrictions on benefits
The Labour Act can provide additional insight on restrictions, but your most significant consideration is the need for a subsidiary in the country. Having a subsidiary will allow you to operate legally as a company, so you can distribute compensation and benefits as you see fit. Establishing this entity can be time-consuming and costly, but with G-P, your new team members are hired through our local entity, so you can avoid the restrictions of benefits management.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ and team of in-country experts make it quick and easy to hire anyone, anywhere, while helping you offer competitive benefits that adhere to local regulations. Learn more about our platform and request a proposal today.