What is the average salary in the Cayman Islands in 2023?

The total monthly salary in the Cayman Islands (a British Overseas Territory located in the Caribbean Sea) is 3,240 KYD per month (Cayman Islands Dollar). This amounts to USD 3,889 as per the exchange rates in April 2023.

In comparison, the average monthly salary in the USA is USD 7,900, which is significantly higher than in the Cayman Islands. This makes the Cayman Islands a fantastic outsourcing location. 

However, it’s a good idea to further analyze the average salary in the Cayman Islands and other elements of its economy to determine if it’s the right outsourcing destination for your business. 

In this article, we’ll cover the average salary in Cayman Islands, other related statistics and trends, and the cost of living to help you make an informed business decision.

Finally, we’ll look into the three key benefits of outsourcing to the Cayman Islands.

Table of Contents

Let’s go.

3 different aspects of average salary in the Cayman Islands

According to Salary Explorer, the average yearly salary in the Cayman Islands is 38,900 KYD (USD 46,696). 

But this figure can vary depending on many factors. Here are a few of them:

• Level of education.
• Work experience.
• Full-time, part-time, or remote employment. 
• Industry.

To give you a better idea, we’ll analyze the country’s salary structure from a few different perspectives:

A. Average salary range

The average yearly pay range is 9,840 KYD (average minimum salary) to 174,000 KYD (average maximum salary).

Note: Since these are averages, the actual maximum salary may be higher, and the actual minimum salary may be lower.

B. Median salary

The median salary of the Cayman Islands is 34,200 KYD (USD 41,054) per year. This means that 50% of the population in the country receives more than 34,200 KYD per year and the other 50% gets less than 34,200 KYD per year.

C. Minimum wage

The national minimum hourly wage in the Cayman Islands is 6 KYD (USD 7.20) for employees who don’t receive gratuities and is 4.50 KYD (USD 5.4) for those who do. The minimum wage values also vary depending on other factors like company-provided accommodation, bonuses, and more. 

Now let’s look into the different salary comparisons in the Cayman Islands.

Salary comparisons in the Cayman Islands

Here are the Cayman Islands salary comparisons:

A. Average salary in different industries

Let’s look at the typical salary of employees in different careers in the Cayman Islands:

Source: averagesalarysurvey.com

B. Average salary of popular Cayman Islands jobs

Let’s look at the annual salary of employees in different job categories: 

Source: salaryexplorer.com

C. Average salary based on experience

Here’s a table showing the salary increase percentage of employees with different years of experience:

Source: salaryexplorer.com

D. Average salary based on education

Like every other country, employees with advanced levels of education earn higher average salaries when compared to others.

• An employee with a college diploma or certificate gets 17% higher salary than another employee with a high school diploma. 
• Employees with bachelor’s degrees receive 24% more than employees with just a diploma or certificate.
• A master’s degree graduate earns 29% more than a bachelor’s degree holder. 
• A Ph.D. holder gets 23% more salary than a master’s degree graduate.

Now that you know the salary comparisons in the country, let’s dive into its average bonuses and increments.

Average increments and bonuses in the Cayman Islands

The average increment rate in the Cayman Islands is 5% every 28 months. Compared to the global average increment rate of 3% every 16 months, the Cayman Islands provides fewer salary increments. 

Here are the average increments for different industries:

Source: salaryexplorer.com

Here are the average salary increase rates by experience level:

Source: salaryexplorer.com 

According to salary surveys conducted by Salary Explorer, 34% of employees across various sectors received at least one form of monetary bonus. 

Additionally, industries like finance, architecture, and sales have high bonus rates, whereas healthcare and information technology companies have moderate to low bonus rates. 

Now that you know the different average salary trends and statistics, let’s look into the cost of living in the Cayman Islands.

Disclaimer: All the average wage and salary figures in this article are taken from various independent salary surveys. These figures are salary estimate values and only intended as general guidelines.

The cost of living in the Cayman Islands

The Cayman Islands have a high cost of living. 

According to Numbeo, the monthly cost of a single person living in George Town (located in Grand Cayman) is USD 1,462.67 which is slightly higher than New York (USD 1,369.4). 

Additionally, the cost of basic utilities like electricity and water in the Cayman Islands is two times more than in the USA. And when it comes to clothing and shoes, the prices in the Cayman Islands are 83% higher than in the USA.

Despite the high cost of living, you can establish a foreign business profitably in the Cayman Islands because of its advantages. Now, we’ll explore the three benefits of outsourcing to the Cayman Islands.

3 key benefits of outsourcing to the Cayman Islands

Here are the three key benefits of outsourcing to the Cayman Islands:

1. Strategic location

When outsourcing to far-away countries, you might find it challenging to communicate with your offshore team due to cultural differences, language barriers, and time zone differences.

Fortunately, the Cayman Islands is located in the western Caribbean Sea and it takes only an hour away from Miami. The Cayman Islands offers over 50 flights to the USA, Canada, and the UK weekly. 

As a result, business owners from these countries can travel to the Cayman Islands at an affordable rate and save a lot of time. 

2. Helpful government policies

A lack of corporate taxes makes the Cayman Islands one of the most popular tax havens in the world.

On top of that, the government doesn’t impose any direct tax (including income tax) on its residents. As a result, Caymanians and expats don’t need to pay:

• Property taxes.
• Capital gains taxes.
• Withholding taxes.
• Payroll taxes. 

The country has 0% corporate and personal income tax rates. Consequently, international businesses can operate in the Cayman Islands with low tax liability.

Additionally, people from certain countries like the United States, United Kingdom, and Canada can enter and stay in the country for 30 days without a visa. However, to get a work permit, potential employees need to apply for a Temporary Work Permit (TWP) or a Gainful Occupation License (GOL) visa.

3. Fast-growing economy

According to the World Bank, the GDP (Gross Domestic Product) per capita of the Cayman Islands reached USD 85,082.5  in 2020. This is higher than the combined per capita GDP of the other Caribbean countries – Cuba, Haiti, Puerto Rico, and Jamaica (the Great Antilles).

Additionally, Trading Economics predicted that the Cayman Islands will have a GDP growth rate of 2% in 2022. International finance is the most important sector of the country’s economy and accounts for around 55% of its overall GDP. 

As a result, outsourcing finance firms can access the best financial services at a low cost. Foreign banks, health insurance companies, and other financial institutions can prosper here.

The second best-performing industry in the Cayman Islands is tourism, which accounts for around 30% of the country’s GDP. 

According to WorldData.info, the Cayman Islands had the 6th highest number of tourists per resident in 2020, outperforming the Dominican Republic), which had 0.25 tourists per resident. 

All these factors contribute to a strong economy that is suitable for outsourcing.

Wrapping up

The Cayman Islands is a great outsourcing location due to its strategic location, relaxed corporate and income tax, and welcoming government policies. 

Most importantly, it has a low average salary when compared to other western countries. This means that you can employ candidates with diverse skill sets economically. 

But before you take the leap, don’t forget to conduct thorough research regarding the average salary. You can use the comprehensive analysis in this article to understand the salary structure in the Cayman Islands.