Payroll Services in Guernsey
Fully managed payroll in Guernsey: ETI at 20%, social security at 7.1% and 7.5%, secondary pensions and quarterly returns, with HR and benefits advice alongside and a named specialist a phone call away.
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Payroll solutions in Guernsey: what we handle for you
Guernsey runs its own payroll system, separate from UK PAYE. Employers deduct income tax under the Employees Tax Instalment scheme, pay social security to the States and report both every quarter, and all of them must now enrol staff in a workplace pension.
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Calculate Your Employee Costs in Guernsey
Enter a gross annual salary to see the employer’s cost in Guernsey for 2026: Class 1 social security at 7.1% and the 1% minimum secondary pension contribution, both on earnings up to £196,560 a year.
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*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertUnited Kingdom
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Employer Costs in Guernsey Explained
Guernsey employers pay 7.1% in social security and at least 1% into a secondary pension in 2026, both on earnings up to £16,380 a month. Income tax and the employee’s own contributions come out of gross pay.
Class 1 contributions in 2026 are 7.1% for the employer and 7.5% for the employee, each up from the year before under the States’ long-term plan to raise rates. The upper earnings limit is £3,780 a week or £16,380 a month, so the most an employer pays is £268.38 a week and the most an employee pays is £283.50.
The lower earnings limit is £192 a week or £832 a month. Nothing is deducted for employees earning less.
Income tax is a flat 20%. Employers deduct it through the Employees Tax Instalment scheme, using the coding notice the Revenue Service issues for each employee. The personal allowance is £15,200 for 2026, and it is withdrawn by £1 for every £5 of income above £85,000.
Benefits in kind also run through payroll. The separate benefits return for 2026 is due by 15 February 2027.
Every employer must now offer a workplace pension and enrol its staff. Since 1 January 2026 the minimum contribution is 2.5% of earnings: at least 1% from the employer and 1.5% from the employee. The employer minimum rises to 2% in 2027, 3% in 2029 and 3.5% in 2032, when the employee’s reaches 6.5%.
Contributions use the same earnings as social security, including bonuses, overtime and commission, up to the upper earnings limit.
For an employee on £60,000 a year, the employer pays £4,260 in social security and £600 in pension contributions, for a total cost of £64,860.
The employee pays £4,500 in social security, £900 into the pension and £8,960 in income tax, and takes home £45,640, before any income tax relief on the pension contribution.
Guernsey law sets fewer entitlements than the UK, so more depends on the contract. There is no statutory paid holiday or sick pay, and no statutory redundancy pay. The contract must set out holiday and sick pay terms, and the written statement is due within four weeks of starting.
Minimum notice is one week, rising to two weeks after two years and four weeks after five. Maternity leave is 12 weeks, or 26 weeks with 15 months’ service. An employee with one year’s service can claim unfair dismissal, with compensation of six months’ pay.
Guernsey payroll taxes and contributions, 2026
| Item | Employer | Employee | Applies to |
|---|---|---|---|
| Social security (Class 1) | 7.1% | 7.5% | Earnings from £832 to £16,380 a month |
| Secondary pension (minimum) | 1% | 1.5% | Earnings up to £16,380 a month |
| Income tax (ETI) | None | 20% | Income above the £15,200 personal allowance |
| Returns and payments | Quarterly | 15 April, 15 July, 15 October and 15 January | |
| Minimum wage, age 18 and over | £13.10 | An hour, since 1 October 2026 | |
| Minimum wage, age 16 and 17 | £11.80 | An hour, since 1 October 2026 |
Secondary pension minimums for employers in Guernsey
| From 1 January | Employer minimum |
|---|---|
| 2026 | 1% |
| 2027 and 2028 | 2% |
| 2029 to 2031 | 3% |
| 2032 | 3.5% |
Gross to net and employer cost in Guernsey, annual
| Annual gross salary | Employee social security | Employee pension | Income tax | Net pay | Total employer cost |
|---|---|---|---|---|---|
| £40,000 | £3,000 | £600 | £4,960 | £31,440 | £43,240 |
| £60,000 | £4,500 | £900 | £8,960 | £45,640 | £64,860 |
| £100,000 | £7,500 | £1,500 | £17,560 | £73,440 | £108,100 |
The gross-to-net table assumes the standard personal allowance, withdrawn above £85,000, and the minimum pension contributions, before any income tax relief on them. These are TopSource calculations from the verified rates.
Rates and thresholds shown were verified on 2 November 2026 against States of Guernsey guidance, the 2026 Budget and the States’ decision on the minimum wage. This page is general information, not tax or legal advice.
How our Guernsey payroll service works
Why Choose TopSource for Global Payroll in Guernsey
TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. If you would rather not employ staff in Guernsey directly, our Employer of Record in Guernsey can employ them on your behalf.
We don’t hide fees or sneak price increases. We run Guernsey payroll in-house and file under your own registration rather than a bureau’s, so the same team that pays your salaries answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions and fees, and one live Portico view of Guernsey beside every other country we run for you, including Jersey and the UK. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified.
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Accelerating your growth in Guernsey and beyond
TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment.
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Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way.
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Guernsey payroll FAQs
Employers pay 7.1% Class 1 social security on earnings up to £16,380 a month, and at least 1% into a secondary pension on the same earnings. The employer pension minimum rises to 2% in 2027.
ETI is the Employees Tax Instalment scheme, Guernsey’s equivalent of PAYE. Employers deduct income tax at 20% from pay using a coding notice from the Revenue Service, then report and pay it each quarter.
Quarterly, by 15 April, 15 July, 15 October and 15 January. These deadlines apply to all employers, and a late return brings an automatic £300 penalty, with up to £50 a day after that.
£15,200. It is withdrawn by £1 for every £5 of income above £85,000, and income tax is a flat 20% on what remains.
An employee on £60,000 a year costs £64,860 with 7.1% social security and a 1% pension contribution, and takes home about £45,640. Tell us the role and salary and we’ll send the full cost within one business day.
Since 1 October 2026 it is £13.10 an hour for workers aged 18 and over and £11.80 for workers aged 16 and 17.
Yes. Under Secondary Pensions all employers must enrol staff in a workplace scheme. The minimum since January 2026 is 1% from the employer and 1.5% from the employee, on earnings up to £16,380 a month.
No. Guernsey has no statutory paid holiday or sick pay, so both depend on the contract, and the written statement of terms must set them out. The minimum wage and notice periods are statutory.
Yes, but not yet. In October 2026 the States approved a package with GST at 3% from 2029, with cuts to income tax and social security coming first. Several stages remain before the final rates are set.
Employers with staff working in Guernsey generally register with the Revenue Service, file electronically and operate ETI. TopSource can run payroll under your registration or employ your team through our Employer of Record service.
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