The Jamaican flag features black, green, and gold/yellow, symbolizing hardship, hope, and wealth.
Payroll and Benefits Guide - Jamaica
Fun Facts
The Jamaican language, known as Patois or Jamaican Creole, is widely spoken alongside English.
Jamaica has the most churches per square mile of any country in the world. Religion plays a significant role in Jamaican culture.
Jamaica is the birthplace of reggae music.
Jamaica has a rich history of art and craftsmanship.
Jamaica is home to the Lignum Vitae, one of the hardest and densest woods in the world.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| National Insurance Scheme | 3.00% |
| National Housing Trust (NHT) | 2.00% |
| Education Tax | 2.25% |
Employer Payroll Tax
| Contribution Type | Rate |
| National Insurance Scheme | 3.00% |
| National Housing Trust | 3.00% |
| Education Tax | 3.00% |
| Human Employment & Resources Training | 3.00% |
Payroll
Payroll Cycle
Monthly or bimonthly payments are given for salaries.
13th Salary
In Jamaica, there is no legal obligation for a 13th-month wage.
Work Hours and Week
Eight hours a day, or 40 hours a week, is widely considered to be a full-time workweek.
In Jamaica, seven days a week, including Sunday, are now regarded as working days, with shifts lasting up to 12 hours in a day.
Overtime
Work that goes beyond 40 hours per week, work on a rest day, or labor on a holiday are all considered overtime.
All work that exceeds 40 hours per week must be compensated at a rate of 150% salary. Sunday and holiday work is compensated at a rate of 200%.
Leave
Paid Time Off
Every year, employees are given two weeks of paid time off. Employees with more than ten years of nonstop service are eligible for three weeks of paid leave.
Public Holidays
Every year, the government chooses whether to move public holidays that fall on the weekend to a working day instead.
Sick Days
Two weeks (10 working days) of paid time off are available to employees each year. Employees with more than 10 years of continuous employment are eligible for three weeks (15 working days) of paid time off.
Maternity Leave
After one year of work, pregnant employees are eligible to 12 weeks of maternity leave.
The eight-week maternity leave is compensated at the standard salary rate.
Paternity Leave
Paternity leave is not a statutory obligation in Jamaica.
Parental Leave
Parental leave is not a statutory obligation in Jamaica.
Termination
Termination Process
A fixed-term contract may be terminated by the employer for any of the following reasons: business, personal, or employee misconduct. It necessitates notice and a justification for the termination in writing. A warning must be delivered and the employee is given the option to defend actions if the reason is misconduct.
Notice Period
According to the period of employment, the minimal working notice or termination remuneration in lieu of notice needed under Section 63 is as follows:
- Employees are entitled to 2 weeks’ notice after up to 5 years of employment.
- Four weeks’ notice is required after five to ten years of service.
- Workers are entitled to 6 weeks’ notice after 10 to 15 years of employment.
- 8 weeks’ notice for employees with 15 to 20 years of service
- 20 or more years of service and a 12-week notice
Severance Pay
Only cases of redundancy require severance pay. For the first ten years of service, severance pay for redundancy is computed at two weeks’ pay each year; beyond that, it rises to three weeks’ pay per year.
Probation Period
Probation Period
In Jamacia, a probationary period is not mandated by law. However, most collective bargaining agreements include a 3- to 6-month probationary term.
Immigration
The Ministry of Labor and Social Security’s (MLSS) Work Permit Department must receive an application from the person requesting a work permit through their potential employer, contractor, or legal advisor.
Employers are obliged to send a cover letter detailing the following to the permanent secretary of the MLSS when applying for work permits on behalf of potential employees:
- The application’s justifications
- The length of the work being done
- Any attempts to hire locals to complete the specified work
Applications for work permits on behalf of independent contractors must also include a cover letter detailing the following:
- The specified work’s nature and duration
- Certified copies of the applicant’s credentials
- Two (2) photos from a passport
- The person’s resumé
- The person’s police history
Application must be accompanied by a 14,400 JMD non-refundable processing fee. The applicant must pay a work permit fee before the permission can be given, even if the MLSS authorizes the grant.
The following describes the period of work permit costs (JMD):
- Three months or less – 27,000 JMD
- Three to six months and 54,000 JMD
- Six to nine months and 81,000 JMD
- Nine to twelve months – 18,000 JMD
An approval of a work permit typically takes 4 to 6 weeks to complete.
VAT
In Jamaica, the average GCT rate is 15.00%.