Payroll in Gibraltar

Are you interested in payroll in Gibraltar and need a team of specialists? You may access our online services and discover our offers. First, you may explore this article and see what payroll entails.

What is payroll and why is it mandatory for companies in Gibraltar?

Payroll is a process through which salaries are calculated. Payroll is mandatory for companies with employees in Gibraltar.

How is the payroll process executed in Gibraltar?

• a payroll specialist has access to the company list of employees,
• calculation of tax salaries is handled by a payroll specialist in Gibraltar,
• once the payroll documents are executed, the management will approve and sign them,
• payslips are issued,
• salary taxes are paid,
• salaries are distributed in the company, according to standard policies.

What are the payroll taxes in Gibraltar?

In Gibraltar, there is a so-called “Pay as You Earn – PAYE” system. Here is what it entails:

• 18% is the employer social insurance contribution on gross earnings (minimum £31.97, maximum £56.22 per week),
• 10% is the employee social insurance contribution on gross earnings (minimum £14.33, maximum £40.79 per week),
• the gross income-based system ranges between 6% and 28%, depending on the income earned in the company.

IMPORTANT: In Gibraltar, there are two important tax systems to consider:

• Allowance-Based System – ABS,
• Gross Income Based System – GIBS.

What information is needed to execute payroll in Gibraltar?

• Employee registration data,
• Contractual details,
• Working hours, remuneration, leaves, bonuses, etc.,
• Base pay structure of employees,
• Overtime and allowance as the case may be.

Who pays the salary taxes for employees in Gibraltar?

The hiring company, through the payroll system and specialists in charge.

Can I ask for assistance in tax inspections for my company in Gibraltar?

Absolutely. Our accountants in Gibraltar can represent your interests.

How are salaries paid in Gibraltar?

Monthly.

NOTE: There are companies in Gibraltar that pay their staff weekly or bi-monthly.

What is the payroll cycle in Gibraltar?

Monthly, in general, but exemptions apply.

Is severance pay available in Gibraltar?

Yes. This is known as Statutory Redundancy Pay – SRP.

Are externalized payroll services advantageous for companies in Gibraltar?

Yes. Here are some of the benefits:

• there are payroll specialists to work with, up to date with the law modifications,
• it is highly recommended for small, medium and international corporations to skip complexities from the start and align with the local rules and legislation,
• administrative burdens are significantly reduced, etc.

For more information about company tax compliance (including, but not limited to payroll in Gibraltar), as well as for details regarding the employer’s duties and obligations when hiring employees in Gibraltar, please contact our team.
We also provide other services to companies, including those for setting up a virtual office in Gibraltar.