Minimum Wage - Department of Labour and Pensions
Minimum Wage
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New Minimum Wage Effective 1 January 2026
As of 1 January 2026, the minimum wage will increase to CI$8.75 per hour. This applies across all sectors and is not restricted to particular types of workers.
Increased National Minimum Basic Wage
Key Highlights
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New minimum wage: CI$8.75 per hour (effective 1 January 2026)
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Current minimum wage: CI$6.00 per hour (since 2016)
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Purpose: To ensure fair pay for Cayman’s workforce and improve quality of life for residents
Why the Change?
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Inflation rose by more than 35% between 2016 and 2024, reducing the real value of wages.
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Studies by the International Labour Organisation (ILO) and the Minimum Wage Advisory Committee found that the old CI$6.00 wage no longer met workers’ basic needs.
Special Calculations:
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Must still be paid the minimum wage of CI$8.75/hour. No more than 25% of the National Minimum Basic Wage (CI$2.19 per hour) can be counted from gratuities. Importantly, employees are still entitled to keep all gratuities they earn, on top of their regular wages.
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Must still be paid the minimum wage of CI$8.75/hour. Employers may apply up to 25% of the National Minimum Basic Wage (no more than CI$2.19 per hour) as a credit for accommodations and utilities. This means the minimum cash wage that must be paid to a live-in domestic worker is CI$6.56 per hour. This credit applies only to live-in household domestics.
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Must still be paid the minimum wage of CI$8.75/hour. No more than 25% of the National Minimum Basic Wage (CI$2.19 per hour) can be counted from commission. Importantly, employees are still entitled to keep all commissions they earn, on top of their regular wages.
Expected Benefits
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Improve living standards for low-income workers
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Reduce poverty and income inequality
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Boost local spending and support small businesses
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Encourage fairness, motivation, and productivity in the workplace
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Reduce reliance on government financial assistance
Frequently Asked Questions
Starting 1 January 2026, the National Minimum Basic Wage in the Cayman Islands will be CI$8.75 per hour (before deductions).
1 January 2026.
Yes, this is the rate before applicable pension and health insurance deductions.
Every employer must pay at least the National Minimum Basic Wage, unless they are exempted.
Yes, unless specifically exempted.
The National Minimum Basic Wage does not apply to:
- Self-employed persons
- Juveniles (a person under the age of seventeen years, who is required by law to attend school)
- Charitable Organisations (one registered and accepted as such by the Director of the Department of Labour and Pensions)
- Churches
Yes. There are special calculations for:
- Service Employees who work for an employer with a registered gratuities scheme that has been approved in writing by the Director of the Department of Labour and Pensions (DLP)
- Live-in Household Domestics'
- Employees working on a Commission Basis
For Service Employees: No more than 25% of the National Minimum Basic Wage (CI$2.19 per hour) can be counted from gratuities. Importantly, employees are still entitled to keep all gratuities they earn, on top of their regular wages.
For Live-in Household Domestics: Employers may apply up to 25% of the National Minimum Basic Wage (no more than CI$2.19 per hour) as a credit for accommodations and utilities. This means the minimum cash wage that must be paid to a live-in domestic worker is CI$6.56 per hour. This credit applies only to live-in household domestics.
For Commission Based Employee: No more than 25% of the National Minimum Basic Wage (up to CI$2.19 per hour) can can be counted from commission. Importantly, employees are still entitled to receive all commissions they earn, on top of their regular wages.
The 25% or CI$2.19 in-kind credit applies to the provision of accommodations and utilities only.
Only employers with a gratuities scheme that has been registered and approved in writing by the Director of the Department of Labour and Pensions (DLP) may count gratuities toward the National Minimum Basic Wage. However, gratuities can account for no more than 25% of the National Minimum Basic Wage (CI$2.19 per hour).
Yes, unless that person falls under one of the exempted categories.
Employers can be fined up to CI$2,500 and/or a prison term of up to six months for a first offence.
For a second or any further offence, the penalty increases to a fine of up to CI$5,000 and/or imprisonment for up to twelve months.
Enforcement will be carried out by the Department of Labour and Pensions, supported by a team of inspectors. Employees or the public may contact the Department directly at 945-8960 for inquiries or assistance.
Additionally, a confidential labour tip line is available at 945-3073 for employees to report any violations or breaches committed by their employer.
Overtime is always calculated at one and a half times an employee's normal hourly rate.
This means that if an employee is earning the National Minimum Basic Wage of Cl$8.75 per hour, the minimum overtime rate will be CI$13.13 per hour. E.g. CI$8.75 per hour x 1.5 = CI$13.13 per hour.
If an employee's regular rate of pay is higher than the minimum wage, their overtime rate will also be higher, since it must be based on their actual hourly rate. E.g. If you are paid CI$17.00 per hour, CI$17.00 per hour x 1.5 = CI$25.50 per hour for any overtime worked.
The only exception is if an overtime waiver has been agreed between the employer and employee and approved by a Labour Tribunal.
All workers-including service staff, live-in domestic helpers, and commission-based employees-must be paid at least the National Minimum Basic Wage when on leave (sick, vacation, maternity, etc.). For live-in domestic helpers, if part of their wage is counted as housing and utilities (for example, in-kind CI$2.19 per hour), the cash portion of their leave pay must still be at least CI$6.56 per hour to reach the minimum wage of Cl$8.75 per hour.
The Government has a social and moral duty to protect people's well-being and prevent unfair treatment at work. A minimum wage helps ensure that the lowest-paid workers earn enough to reduce hardship and avoid economic vulnerability. It is a key tool to improve living standards and promote fairness in the Cayman Islands.
A 16-member Minimum Wage Advisory Committee, made up of employers, employees, and independent representatives, agreed on CI$8.75 per hour after careful review and discussion. The Economics and Statistics Office calculated a lower limit of CI$6.44 per hour (based on the poverty and vulnerability line), while businesses said they could pay up to Cl$9.00 per hour. The final amount of CI$8.75 was chosen as a fair balance. For full details, see pages 10-12 of the Minimum Wage Advisory Committee's Final Report.
You can find the Minimum Wage Advisory Committee's Final report on the Economics and Statistics Office website www.eso.ky under Other Reports.
For more information or enforcement matters, please contact the Department of Labour and Pensions at +1(345)945-8960. Employees can also utilise a confidential tip line 945-3073 to report any suspected breaches of the Labour Act.
Follow DLP on Facebook, Linkedin and Instagram for updates, announcements, and additional information.
- Start with the employee's monthly gross salary (before health insurance and pension are deducted).
- Multiply it by 12 to get the yearly salary.
- Multiply the employee's normal weekly hours by 52 to get total yearly hours.
- Divide the yearly salary by the yearly hours to find the hourly rate.
This hourly rate must be at least Cl$8.75.
Reporting Non-Compliance
How to Report
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Email: dlp@gov.ky
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Phone: +1(345)945-8960
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Confidential Hotline: (345) 945-3073
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In person: Department of Labour & Pensions, 2nd Floor, Mid Town Plaza, 273 Elgin Avenue, George Town
What to Include
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Your name and contact information (optional — anonymous reports are accepted).
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Employer’s name and business location.
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Nature of the concern (e.g. underpayment, withheld wages, deductions).
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Dates or pay periods affected.
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Any supporting documents (e.g. pay slips, work schedule).
Enforcement
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Conduct interviews or request payroll documentation, employment contracts, time records, and details on Pensions contributions to include Pensions provider.
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Perform an inspection and audit.
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Issue an inspection report
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Refer cases for legal action if necessary.
