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Jamaica

Payroll and Benefits Guide

Last updated:
Dec 8, 2022

Table of contents

Overview Contributions Minimum Wage Payroll Working Hours Leave Termination Common Benefits VISA VAT

Overview

Capital
Kingston
Currency
Jamaican Dollar (JMD)
Date Format
dd/mm/yyyy
Fiscal Year
1 April - 31 March
Payroll Frequency
Monthly
Employer Taxes
12.50%

Contributions

Employer

Employer Payroll Contributions

3.00% National Insurance Scheme (NIS) (on maximum renumeration of 5 million JMD per year)
3.00% National Housing Trust (NHT)
3.50% Education Tax
3.00% Human Employment & Resources Training (HEART)
12.50% Total Employment Cost

Employee

Employee Payroll Contributions

3.00% National Insurance Scheme (NIS) (on maximum remuneration of 5 million JMD per year)
2.00% National Housing Trust (NHT)
2.25% Education Tax
7.25% Total Employee Cost

Employee Income Tax

0.00% Up to 1,500,096 JMD
25.00% 1,500,096 JMD to 6,000,000 JMD (applicable Jamaican residents)
30.00% Above 6,000,000 JMD

Minimum Wage

General

The weekly minimum wage in Jamaica is 9,000 JMD per week and 10,500 JMD per week for security guards (based on a 40-hour working week).

 

Payroll

Payroll Cycle

Salaries are paid on either a monthly or semi-monthly basis.

13th Salary

There is no statutory requirement for a 13th-month salary in Jamaica.

 

Working Hours

General

Full-time employment is considered 40 hours weekly and is generally 8 hours per day. 

Seven days a week, including Sunday, are now considered working days in Jamacia, with work shifts up to 12 hours in 24 hours.

Overtime

Overtime is defined as work exceeding 40 weekly hours, work on a rest day, or work on a holiday.  

Overtime pay is 200.00% of the normal pay for each additional hour worked or whatever contractual agreement the employee and employer have agreed upon.  

Working Week

Sunday-Saturday

 

Leave

Paid Time Off

Employees are granted two weeks of paid leave per year. Three weeks of paid leave is given to employees with over ten years of continuous service.  

Public Holidays

There are 11 public holidays in Jamaica.

Sick Days

Employees are granted two weeks of paid leave per year. Three weeks of paid leave is given to employees with over ten years of continuous service.  

Maternity Leave

Pregnant employees are entitled to 12 weeks of maternity leave once one year of service has been completed.  

The maternity pay is paid for a period of eight weeks at the regular salary rate.

Paternity Leave

There is no statutory requirement for paternity leave in Jamaica.

Parental Leave

There is no statutory requirement for parental leave in Jamaica.

Other Leave

There is no other statutory leave in Jamaica.

 

Termination

Termination Process

Employers can terminate a fix term contract by giving the following reasons – business, personal, or worker’s misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain actions.  

Notice Period

The minimum amount of working notice or termination pay in lieu of notice required under Section 63 is determined by the length of employment as follows:  

  • Up to 5 years of employment entitles workers to 2 weeks’ notice.
  • 5-10 years of service entitles workers to four weeks’ notice.
  • 10-15 years of service entitles workers to 6 weeks’ notice.
  • 15-20 years of service workers to 8 weeks’ notice.
  • 20 + years of service workers to 12 weeks’ notice.

Severance Pay

Severance pay is only required for cases of redundancy.  

Severance pay for redundancy is calculated at two weeks’ pay per year for the first ten years of service and, after that, increasing to three weeks´ pay per year.

Probation Period

There is no statutory requirement for a probationary period in Jamacia. However, collective agreements generally stipulate a 3 to 6-month probation period.

 

VISA

VISA

Persons seeking to obtain a work permit are required to apply to the Work Permit Department of the Ministry of Labour and Social Security (MLSS) through their prospective employer, contractor, or legal representative.

Employers submitting work permit applications on behalf of prospective employees are required to submit a cover letter to the Permanent Secretary of the MLSS, outlining:

  1. The reasons for the application
  2. The duration of the work being undertaken
  3. Any efforts to recruit local persons to carry out the work stipulated

  Applications for work permits on behalf of self-employed persons must also be submitted with a cover letter outlining

  1. The nature and duration of the work stipulated
  2. Certified copies of the credentials of the applicant
  3. Two (2) passport photographs
  4. The individual’s resume
  5. The individual’s police record  

A non-refundable processing fee of 14,400 JMD must be submitted with the application. If the MLSS approves the grant, the applicant must pay a work permit fee before the permit can be issued.

Duration of Permit                              Work Permit Fee (JMD)

Up to 3 months                                   27,000 JMD

3 – 6 months                                        54,000 JMD

6 – 9 months                                        81,000 JMD

9 – 12 months                                      108,000 JMD  

The turnaround time for the approval of a work permit is approximately 4 – 6 weeks.

 

VAT

General

The standard rate of GCT in Jamacia is 15.00%.

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