Gibraltar: Employed vs Self-Employed Comparison
Compare take-home pay as a Gibraltar PAYE employee versus a self-employed sole trader at the same income, including GIBS/ABS tax and social insurance differences.
PAYE employeeGB£39,360
Effective tax rate34.4%
Self-employed sole traderGB£38,664
Effective tax rate35.6%
Employee or sole trader in Gibraltar: comparing net income side by side
Choosing between staying employed and going self-employed in Gibraltar isn't just about the day rate you can command — the two routes are taxed on the same income tax bands but very different social insurance rules. This calculator compares net income under both statuses at the same gross amount.
Where the two statuses actually differ
- Income tax is identical either way: the lower of ABS (£3,455 allowance then 14%/17%/39%) or GIBS applies regardless of employment status
- Social insurance is not identical: employees pay 10% of earnings (capped at £2,227.13/year) while their employer separately pays 18% (capped at £3,069.61/year); the self-employed pay 20% of earnings themselves (capped at £2,923.83/year) with no separate employer contribution
- An employee's 18% employer social insurance cost isn't visible on a payslip but represents a real cost of employing someone that a self-employed person doesn't have to fund on top of their own income
- Self-employed status brings no automatic paid holiday, sick pay or employer pension contribution — costs that a day rate or fee needs to cover if you want equivalent protection
