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.

This is the first adjustment to the minimum wage since its introduction in 2016, aimed at helping workers keep up with the rising cost of living.

Key Highlights

• New minimum wage: CI$8.75 per hour (effective 1 January 2026)
• Current minimum wage: CI$6.00 per hour (since 2016)
• Purpose: To ensure fair pay for Cayman’s workforce and improve quality of life for residents

Why the Change?

Since 2016, the cost of living in the Cayman Islands has increased significantly.

• Inflation rose by more than 35% between 2016 and 2024, reducing the real value of wages.
• 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.

The increase to CI$8.75 per hour helps restore purchasing power and provides a fairer standard for workers, while balancing the needs of employers and the economy.

Special Calculations:

1. Employees in the Service Industry (with approved gratuity schemes)

• 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.

2. Live-In Household Employees

• 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.

3. Commission Based Employees

• 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

Raising the minimum wage is expected to:

• Improve living standards for low-income workers
• Reduce poverty and income inequality
• Boost local spending and support small businesses
• Encourage fairness, motivation, and productivity in the workplace
• Reduce reliance on government financial assistance

Reporting Non-Compliance

The Department of Labour & Pensions (DLP) investigates all complaints and reports of non-compliance with the National Minimum Basic Wage.

How to Report

You may report suspected violations through any of the following channels:

• Email: dlp@gov.ky
• Phone: (345) 945-8960
• Confidential Hotline: (345) 945-3073
• In person: Department of Labour & Pensions, 2nd Floor, Mid Town Plaza, 273 Elgin Avenue, George Town

What to Include

When submitting a report, please provide:

• Your name and contact information (optional — anonymous reports are accepted).
• Employer’s name and business location.
• Nature of the concern (e.g. underpayment, withheld wages, deductions).
• Dates or pay periods affected.
• Any supporting documents (e.g. pay slips, work schedule).

All reports are handled confidentially, and retaliation against a complainant is strictly prohibited under the Labour Act.

Enforcement

Once a report is received, DLP may:

• Conduct interviews or request payroll documentation, employment contracts, time records, and details on Pensions contributions to include Pensions provider.
• Perform an inspection and audit. 
• Issue an inspection report 
• Refer cases for legal action if necessary.

Resources and More Information

• Frequently Asked Questions: Minimum Wage FAQs
• Printable Brochure: National Minimum Wage FAQ Brochure
• Read the Minimum Wage Advisory Committee’s Final Report here: Minimum Wage Regime in the Cayman Islands
• For any questions or further clarifications, you can email minimumwage@gov.ky  

For more information on enforcement matters, please contact the Department of Labour and Pensions at 945-8960 or email dlp@gov.ky Employees can also utilise a confidential tip line 945-3073 to report any suspected breaches of the Labour Act.