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Overview
Jamaican Dollar (JMD)
CURRENCY
Kingston
CAPITAL
monthly
PAYROLL FRECUENCY
11
PUBLIC HOLIDAYS
0 to 12.50
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Jamaica
Employer
Company Payroll contributions
0% - 3%
National Security Scheme (INS). In this case, it is for remuneration of JMD 5 million per year
0% - 3%
Housing Trust Fund (NHT)
0% - 3.50%
Educational tax
0% - 3%
Human Employment & Resources Training (HEART)
0% - 12.5%
Total Employment Cost
Employee
Employee Payroll Contribution
0%- 3%
Employee Payroll Contribution
0%- 2%
National Housing Trust (NHT)
0%- 2.25%
Education Tax
0% - 7.25%
Total Employee Cost
Employee Income Tax in Jamaica
Employment Income Tax
0%
Up to 1,500,096 JMD
25%
1,500,096 JMD to 6,000,000 JMD (applicable Jamaican residents)
30%
Above 6,000,000 JMD
Minimum Wage in Jamaica
General
Thanks to the payroll outsourcing companies you will be able to learn about the minimum wage, which is now JMD 9,000 per week. However, people who work as security guards receive a minimum wage of JMD 10,500 each week. Furthermore, in both cases, both types of workers are considered to have worked 40 hours per week.
$189.44 Minimum Wage per month
Payroll Contributions in Jamaica
Payroll Cycle
With payroll outsourcing, you can make this payment, which the company must make biweekly or monthly.
13th Salary
Although this is not required by law in Jamaica, you can work with an EOR if you want to provide similar compensation to your employees.
Employee Benefit in Jamaica
Visa and work permit in Jamaica
Companies that hire remote workers worldwide can get this work permit for their future employees. In this case, you must submit a visa application to the Work Permits Department of the Ministry of Labor and Social Security (MLSS). In addition, the company or an EOR must submit a letter of introduction to the Permanent Secretary of the MLSS.
Therefore, in the said letter, the company must describe in detail the following:
- The reasons for the request
- Also, what will be the duration of the job?
- Likewise, efforts were made to hire local employees to perform the work
Likewise, self-employed workers must also include a cover letter with their application. In this case, the letter must contain the following elements and be accompanied by various documents:
- What does the job consist of and how long does it last?
- Also, submit certified copies of your credentials.
- Include 2 passport photos.
- Additionally, the resume of the worker.
- Police record.
Also, you will need to pay an application fee (non-refundable) of JMD 14,400 along with the application. Likewise, if approved by the MLSS, the permit fee must be paid before the applicant can receive it. However, to facilitate these procedures, you will be able to take advantage of the PEO benefits in these aspects.
Permit duration:
- Up to 3 months: 27,000 JMD
- 36 months: 54,000 JMD
- 6 – 9 months: 81,000 JMD
- 9 – 12 months: 108,000 JMD
In addition, the time it takes for the approval of the work permit is between 4 and 6 weeks.
VAT in Jamaica
With an EOR you will be able to know in more detail and calculate the GCT in Jamaica which right now is 15.00%.
Working Hours in Jamaica
General
A PEO International can help you keep track of employee time, which in Jamaica is 8 hours a day. In this case, full-time employment consists of 40 hours each week. However, currently, every day of the week is a working day in the country, including Sunday.
In addition, a person can get to work for 12 hours in a single day.
Overtime
In the case of overtime, these are those that exceed the statutory 40 weekly hours. In addition, the work done on the rest day of the worker or one of the holidays is also taken as overtime. Therefore, a Professional Employer Organization will be helpful in accurately calculating the pay for these hours to each employee.
Thus, the payment will be 200% of the normal payment for each extra hour that the employee must work. However, this can also depend on the employment contract that has been made between the parties involved.
Working Week
Sunday-Saturday
Employee Termination in Jamaica
Termination Process
Through an EOR, you can terminate the fixed-term contract for the business, personal, or employee misconduct. However, you must provide written notice with the details and reason for termination. However, if the specified reason is misconduct, you must give a warning and allow the worker to explain himself.
Notice Period
Employment agencies in Kingston will help you learn in detail the notice periods and the corresponding payments. Therefore, the notice period is established in section 63 as follows:
- 2-week notice for employees with up to 5 years of service.
- On the other hand, a notice of 4 weeks for workers with between 5 and 10 years of service.
- Likewise, workers with 10 to 15 years of service will receive a 6-week notice.
- Also, there are 8 weeks of notice for employees with between 15 and 20 years of service.
- Finally, a 12-week notice for employees with more than 20 years of service.
Severance Pay
This type of compensation is paid by employment agencies or the company only in case of dismissal of the worker. In addition, the payment consists of 15 days of salary for each year of work during the first 10 years of service. After that time, the worker receives, for each additional year, three weeks of additional salary as compensation.
Probation Period
Although there is no specific regulation or article about this period, the best PEO for small business, you can determine it. In this case, collective agreements commonly establish this time between 3 to 6 months.
Employee Leaves in Jamaica
Paid Time Offs
Employees in Jamaica get 2 weeks of paid vacation each year and you can easily do this calculation through a PEO. Likewise, workers with more than 10 years of service in the company receive 3 weeks fully paid.
Public Holidays
There are 11 national holidays throughout the year.
Vacation Holidays
There are 9 vacation holidays throughout the year.
Sick Days
In this case, employees are entitled to receive 2 weeks of paid leave in a year. Likewise, employees with 10 or more years of uninterrupted service will receive 3 weeks of paid leave.
Paternity Leave
However, despite having maternity leave, in Jamaica, a leave for the father is not established in law.
Paternal Leave
Also, there is no legal requirement for a license for both parents in Jamaica.
Other Leave
Although payroll outsourcing services can help you with the above permits, you will not find other types of licenses in Jamaica.
Maternity Leave in Jamaica
Also with HR payroll outsourcing, you can calculate the leave weeks for pregnant workers. In this case, once a year of service has been completed, the employee is entitled to 12 weeks for this type of leave. Likewise, through the PEO payroll, you can make an exact calculation of the 8 weeks of payment based on the regular salary.
There are 84 leave throughout the year.