Global PEO and Payroll in Gibraltar

Expanding your business into Gibraltar requires more than a local sales contact or support rep. With strict social insurance rules, unique tax regulations, and Brexit legacy effects, hiring and paying staff compliantly demands a local solution. Acumen International enables you to deploy talent in Gibraltar, local or expatriate, without setting up your own legal entity.

Our global PEO and Employer of Record (EOR) solutions deliver payroll precision, risk management, and operational flexibility for companies entering or scaling in Gibraltar.

What Is a Global PEO and Employer of Record (EOR) in Gibraltar?

For international companies, hiring in Gibraltar is rarely as simple as onboarding a local contractor or issuing payments through a foreign entity. Gibraltar’s employment landscape requires full legal compliance from day one. A Global PEO (Professional Employment Organisation) or Employer of Record (EOR) steps in as the registered local employer, taking on all statutory obligations while you retain daily management of your staff.

How Does It Work in Practice?

Under Gibraltar law, only locally registered employers may issue valid contracts, register employees with authorities, and operate payroll within the territory. A Global PEO/EOR acts as the legal employer on your behalf. This means:

Your team members are fully compliant, with written local contracts, statutory leave, and access to Gibraltar’s social insurance.
All payroll, taxes, and social contributions are calculated and remitted by the PEO/EOR, in line with the latest regulations.
You avoid the cost, complexity, and delays of setting up your own entity, especially important if you are testing the market, running a project, or need flexibility to scale up or down.

While some providers still market “co-employment” or US-style PEO models, Gibraltar is a classic Employer of Record market. The EOR takes on 100% of the local employer risk, ensuring that your expansion is fully aligned with local employment and compliance realities.

Local Employment Compliance in Gibraltar: What Employers Need to Consider

Gibraltar’s labour system, influenced by English common law, features a series of local requirements that apply to all employers, regardless of company size or sector. Compliance is the foundation for lawful hiring, payroll, and talent management.

Written Employment Contracts
Every employee in Gibraltar must receive a written contract that specifies job duties, salary, pay frequency, notice periods, probation (up to 6 months is standard), and leave entitlements. Contracts must be drafted in accordance with the Employment Act and local practices.

Leave and Working Time
The minimum annual leave is 15 days (excluding public holidays), with additional requirements for sick leave and family leave. Standard working hours and overtime rules are enforced, and breaches may trigger claims or government review.

Termination and Redundancy
Employers must follow statutory notice periods and, in the case of redundancy or termination, provide all due payments and documentation. Unfair dismissal protections are actively enforced, and disputes may be heard by the Industrial Tribunal.

Onboarding and Documentation
All employees, local or expatriate, must be registered with the Department of Social Security prior to commencing work. The employer is responsible for verifying right-to-work status and managing all onboarding paperwork, including KYC and identity verification.

Gibraltar Payroll Essentials: What International Employers Must Know

Managing payroll in Gibraltar means navigating a unique mix of British legal tradition and local regulatory requirements. While Gibraltar is known for its low-tax regime, employers are required to comply with specific statutory obligations that differ from both the UK and other European jurisdictions.

Payroll Currency and Pay Frequency

Salary in Gibraltar are paid in Pounds Sterling (GIP), and most employees are paid monthly, although weekly payroll is also permissible. Employers must agree pay dates and frequency in the employment contract, and provide employees with a payslip showing gross pay, all deductions, and the net amount paid.

From 1 July 2025, Gibraltar moved to a new earnings-based social insurance system:

Employees contribute 10% of gross earnings, subject to a minimum (£14.33/week) and maximum (£40.79/week).
Employers contribute 18% of gross earnings, also within set minimum (£31.97/week) and maximum (£56.22/week) weekly limits.
Social insurance covers health, unemployment, and pension entitlements, and applies to all employees, including expatriates and short-term staff.

Registration and Remittance

Employers are responsible for registering new hires with the Department of Social Security, calculating contributions, and remitting payments on a monthly basis. Failure to register staff, late remittance, or incorrect reporting will result in penalties, back payments, and potential exclusion from hiring permits in the future.

Income Tax and Reporting

Unlike many jurisdictions, Gibraltar does not operate a standard PAYE income tax system for most employees, but tax registration and annual employee returns are still required. Employers must maintain accurate records of all wages and deductions for audit purposes, and provide employees with the necessary documentation for their personal tax filings.

Compliance and Local Nuances

All employment agreements must be in writing, stating key terms, pay frequency, and notice periods. Employers are also responsible for ensuring correct calculation of statutory leave, overtime, and any sector-specific requirements. Gibraltar’s authorities conduct periodic audits, with particular scrutiny of companies employing non-residents or cross-border workers.

Getting Payroll Right in Gibraltar

In practice, successful payroll in Gibraltar depends on both process and expertise. A local payroll provider or Employer of Record ensures your staff are paid accurately and on time, contributions are remitted without error, and your company avoids costly compliance pitfalls. With frequent regulatory updates, such as the 2025 shift to earnings-based contributions, it is critical to work with a partner who monitors changes and can respond quickly to new requirements.

Immigration, Work Permits, and Expatriate Hiring in Gibraltar

Post-Brexit, Gibraltar’s immigration regime is distinct from both the UK and EU, and work permit compliance is now a major consideration for international employers. While UK and Irish nationals may work freely, all other nationalities, including EU/EEA citizens, require work permits, even for short-term assignments.

Sponsoring Foreign Talent
Acumen International manages the end-to-end process of work permit sponsorship, from document gathering and application through to renewal and compliance monitoring. The process is regulated and requires proof of genuine employment, local advertising (in some cases), and employer registration.

Onboarding Expatriates
Once a permit is approved, employees can be onboarded onto local payroll, registered for social insurance, and receive all standard employee benefits. It’s critical that all employment starts only after the permit is granted; non-compliance can lead to severe penalties for both employer and employee.

Practical Considerations

Processing times for permits vary, but typically range from 2–6 weeks
Some roles and sectors may face additional scrutiny, especially if local candidates are available
Acumen ensures all immigration steps are completed in parallel with contract drafting and onboarding, minimising time to productivity.

Who Uses Global PEO and Payroll in Gibraltar? (Use Cases)

Gibraltar attracts a range of international companies, particularly in finance, technology, online gaming, and shipping, looking for an agile, low-overhead presence in the territory. The most common use cases for global PEO/EOR and payroll solutions include:

Deploying regional sales or business development staff: Companies appoint local representatives to open new markets or manage key clients without committing to entity formation.
Hiring expatriate specialists: Where niche skills or project requirements demand foreign talent, a global PEO ensures permits, contracts, and payroll are all handled in full compliance.
Converting contractors to employees: As regulators increase scrutiny of disguised employment, many companies move contractors onto formal employment contracts via an EOR to mitigate risk.
Recruitment agencies and global MSPs: Third-party firms offering workforce solutions to their clients often use a PEO/EOR to ensure placements are legal, paid correctly, and covered by local insurance.

ibraltar-Specific Payroll and Employment Challenges

Operating in Gibraltar is not without its unique hurdles. Key risks and challenges include:

Frequent compliance updates: Social insurance, payroll reporting, and immigration rules change regularly, employers must monitor these shifts closely to remain compliant.
Audit and enforcement: Gibraltar authorities conduct audits targeting non-registered workers, late social insurance remittance, and misclassified contractors. Penalties can include back payments, fines, and even suspension of hiring privileges.
Cross-border workforce management: Many employees reside in Spain but work in Gibraltar. Proper payroll, tax, and immigration handling are essential to avoid double taxation and compliance pitfalls.

With Acumen International as your local PEO and payroll partner, these challenges are proactively managed, ensuring your Gibraltar operation is resilient, compliant, and able to focus on growth.

The Acumen International Advantage: Why Work With Us in Gibraltar?

Acumen International combines two decades of experience in global employment with real-time, local expertise in Gibraltar’s evolving regulatory landscape. Our service includes:

End-to-end onboarding for both local and expatriate hires.
Full payroll administration in line with the latest social insurance and employment requirements.
HR support for contracts, leave management, and terminations.
Work permit sponsorship and immigration compliance for foreign staff.
Ongoing compliance monitoring to prevent costly surprises.

Backed by our Global Payroll Calculator, you gain precise, scenario-based cost projections for every hire, keeping your Gibraltar operation transparent and predictable.

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