Payroll and Benefits Guide Jamaica
Last updated: May 09, 2023
Contributions
Employer
Employer Payroll Contributions
| 12.50% | Total Employment Cost |
| 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) |
Employee
Employee Payroll Contributions
| 7.25% | Total Employee Cost |
| 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 |
Employee
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 |
Employer taxes
Employee taxes
Minimum Wage
General
The weekly minimum wage in Jamaica is 13,000 JMD, (based on a 40 hour week).
MINIMUM WAGE (PER MONTH)
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 Jamacia.
Working Hours
General
Full-time employment is considered 40 hours weekly and is generally eight hours per day.
Seven days a week including Sunday, are now considered working days in Jamaica, 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.
All work above 40 weekly hours must be paid at a rate of 150% salary. Work on Sundays and public holidays are paid at a rate of 200%.
Working Week
Sunday-Saturday
Leave
Paid Time Off
Employees are granted two weeks of paid leave per year. Three weeks of paid leave are given to employees with over ten years of continuous service.
Public Holidays
The government decides each year if public holidays falling on a weekend will be moved to a working day in lieu.
Sick Days
Employees are granted two weeks (10 working days) of paid leave per year. Three weeks (15 working days) 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.
PAID MATERNITY LEAVE (DAYS)
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, increases 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 Labor 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:
- The reasons for the application
- The duration of the work being undertaken
- 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:
- The nature and duration of the work stipulated
- Certified copies of the credentials of the applicant
- Two (2) passport photographs
- The individual’s resume
- 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.
The duration of work permit fees (JMD) are as follows:
Up to 3 months - 27,000 JMD
3 – 6 months - 54,000 JMD
6 – 9 months - 81,000 JMD
9 – 12 months -1 08,000 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%.
Stay up to date on payroll & employment law changes
Version History
Payroll contributions and personal income tax rates have been updated.
Questions & Answers
See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws
Payroll and Benefits Guide
in Jamaica
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Day | Date | Holiday | Notes |
|---|---|---|---|
| Sunday | Jan-1 | New Year’s Day | |
| Monday | Jan-2 | New Year’s Day Holiday | Day Off in Lieu |
| Wednesday | Feb-22 | Ash Wednesday | |
| Friday | Apr-7 | Good Friday | |
| Monday | Apr-10 | Easter Monday | |
| Monday | May-1 | Labor Day | |
| Tuesday | Aug-1 | Emancipation Day | |
| Monday | Aug-7 | Independence Day | |
| Monday | Oct-16 | National Heroes’ Day | |
| Monday | Dec-25 | Christmas Day | |
| Tuesday | Dec-26 | Boxing Day |
Do you get paid for unused vacation days if u resign?
Hi Shane, thank you for your question. This is correct, upon termination, unused vacation days should be paid out.
Good Morning, How is this calculated?
Hi, this is calculated based on the daily pay rate multiplied by the number of unused vacation days.
Thank you. Is this overall of within the current year? Like I’ve worked with a company 1 yr and 6 months bit never taken my vacation days..
This would depend on your company’s policy on rollover vacation days from the previous year. I would suggest reaching out to your HR team to find out how many days of paid leave you have acrued.
how long do you have to be working to be granted sick days pay?
Hi Shanquille, new employees are eligible for sick leave after 110 days of employment. Hope this helps!
THANK YOU
Which month if the year does sick leave becomes eligible?
The first seven days of the year is eligible for sick leave?
Hi Nikki, eligibility depends on the length of employment and not the month. An employee becomes eligible for sick leave after 110 days of employment.
what should I do if I got terminated and I haven’t got paid up
Hi, There are multiple factors involved, so I suggest visiting the Jamaican Government “Employment (Termination and Redundancy) Act” for guidance specific to your situation. https://moj.gov.jm/sites/default/files/laws/Employment%20%28Termination%2C%20etc.%29%20Act.pdf
Should security officers get paid for contract breaks they didn’t get when they resign
Thank you for your question. The best way to approach this matter is by contacting a contract lawyer to examine the specific details of the contract. Circumstances may vary on a case-by-case basis.
If your working for 3 years are u eligible for sick leave?
Yes, you become eligible for sick leave after 110 days of employment.
If I resign my job after being with the company for over 10 years, how will my employer calculate my final pay which should also include my vacation days.
In general, employees earn three weeks of vacation after 10 years of service. If there are unused vacation days earned by the employee, they should be compensated at the regular rate of pay to the employee at the time.
When the year restarts given that you have passed the 110days of employment are you given 10sick days at the start of the year?
If an employee has worked for 110 days, but less than 220 days, they earn 1 day of sick leave for every 22 days worked. Once they have worked for 220 days, they receive their full two weeks of sick leave.
I wana know I have been working ina whole sale for 1yr 8 months is it possible for me to get a leave
Hi Shantal, thank you for your question. It depends on the number of days you have worked. If you have worked between 110-220 days, you earn 1 day of vacation for every 22 days worked. Once you have worked at least 220 days in a year, you are entitled to the full allotment of vacation leave.
Is an employer allowed to lower your pay without notice? My pay structure got lower and I’m just finding out a month later.
Hi Phillip, thank you for your question. In general, this usually needs to be mutually agreed upon between you and your employer, however, there are other factors involved as well.
Hello…If i work seven consecutive days or more should i get double from the seventh day onwards?
Jamaica has flexi-work so it depends on your arrangement with your employer. Also, overtime pay is determined by the number of hours worked in a week and not the number of days, so overtime is only paid if you have worked more than 40 hours in a week.
Just so I understand clearly, After an employee has work for 110 days in the first instance, will he/she be entitled to the full 10 days sick leave right away? or the employee will need to earn on a pro-rated basis there-on in? There is some ambiguity here, please clarify.
Hi Rupert, the law states that after 110 days of employment, a worker is entitled to sick leave with pay for the first 10 days of illness. The law is quite vague in that it doesn’t address how sick leave is accrued other than the aforementioned.
Ok, thanks Emily. You and team are doing a great job. Keep up the good work.
Hi,
Are hourly paid employees entitled to get paid for public holidays if they do not work?
In general, an employer is only required to pay hourly employees for the time they actually worked.
Thanks much! One last question regarding Salaried persons and public holidays, I recall that once you would have been scheduled to work on the day the holidays falls on then you should be paid for the day, in the event an employee had a let’s say a SL filed for that day but doesn’t have any sick days would they still be paid given that it’s a holiday or no? Hope this isn’t confusing, thanks in advance!
If it’s a salaried employee and it’s a non-working public holiday, then it’s irrelevant since they have a set monthly salary. If it’s a working public holiday, then the employee must work — taking sick leave with no sick leave days typically requires a doctor’s note or, it will come out of the employee’s salary. Getting paid for public holidays can also be contract or employer-specific, so it’s best to speak with either HR or a manager.
Hi, what´s the % the employer pays for social security?
Hi Maria, in Jamaica, social security is referred to as “National Insurance Scheme” and the employer contribution is 3.00%. Please see the above employer payroll taxes for more information.
Does the YTD on a payslip include current earnings for a pay period?
Hi Rupert, YTD on the payslip includes everything for the entire year to current, so it indeed does show your current total earnings for the entire year. The quickest way to check this is to go back and look at all of your payslips and calculate your totals.
Thanks Emily
am i eligible for paid maternity after 3yrs of fulltime work then agreed partime for less than a year?
Hi Nev, you should be entitled to maternity leave if you’ve been continuously employed with the same employer, even if you’ve started working part time.
I have been employed for over a year, how many days off am I entitled for?
Hi Tasha, thank you for your question. If you’ve been employed full-time, you are entitled to 2 weeks of paid leave. You can find out more information under the “Leave” section.
Thanks for this. A few questions:
1. What determines whether someone is an hourly employee or weekly one? For example are you an hourly employee not due holiday pay if you work 40 hrs/ week, or are you a weekly employee due holiday pay?
2. What are the laws around payment for live- In workers who take care of the sick and of children?
Hi Marsha, to answer your first question, whether you are deemed hourly or weekly employee would be something that is determined in your employment contract. Regarding your second question, this is out of the scope of what we can offer information for.
Hi, I have worked 3 years and i decided to resign in march…..would i be entitled to vacation pay or sick leave?
Hi, it depends on your written contract regarding time off, but you should be entitled to vacation pay but not necessarily sick leave pay.
Hi good day. I have worked at a contact center for the last 2 years and 6 mths. I gave adequate notice before resigning recently, more than two weeks. Just wanted to Know if I’m only to be paid for vacation days I had that were not used. Seeing that I resigned early this year I just wanted an idea of what I’m to be paid.
Hi. Upon termination of employment, unused vacation days should be compensated. Your contract should stipulate how many days can be carried over from year to year.
Do I have to be working a certain amount of days to get holiday with pay? Can you explain who is a casual/temporary worker?
In order to qualify for paid time off, you have to work at least 110 days. If you work between 110 days and 220 days, you receive one vacation day for every 22 days worked. After you work for 220 days, you receive your full allotment of 2 weeks of paid time off.
A casual worker is one who is not formally employed as a permanent employee by the company but rather hired short-term for a specific task and usually paid by the hour rather than monthly.
What if I was on a 6month work programme but was asked to continue working. Would the 110/220 days be in the 6months? Or does it start after the 6months?
Hi Kay, stepping in for Alex. This would start from the first day of initial employment, not from after the 6 months.
if am fired how much should my company pay me for working 5 years
Hey Akeem, unless stated otherwise in your contract, you are not entitled to severance pay. The only thing that you are paid out for is your unused vacation days.
What if the employee walked off the job without notice to the employer leaving the business unma6. Does the employee still get vacation leave.
They are still entitled to their leave.
Hi,
i started at a new job August 16, and i got paid at the end of August for two weeks.
then in september i got my september salary. then in october my salary was over the amount that i signed up for so i called payroll and they are saying that they’ll recover it but when i look at my payslip i do not understand it. it has total earnings which consist of my gross pay with regular pay then the deductions. i honestly just do not understand
Hi Mistress, thank you for your question. This is not something that we are able to advise you on as we don’t have all of the necessary information to do so. I recommend that you reach out to your HR team or the person that runs your payroll to understand your payslip.
Hi
I started working on November 4 and today which is only 2 days of work.
My boss did not explain to me in the interview about probation nor the salary of the job until today saying I’m on 3 months probation until they can decide whether or not to put me on the payroll.
Now I understand that part but I want to know if I’m supposed to get paid during those 3 months of probation until the 3 months are up and they decide to pay me the full amount like experienced employees?
Hi Jaydee, thank you for your question. During your probation period, you should be paid a monthly salary, it is not unpaid.
So that means i should be paid at the end of each month or fortnight like the rest of employees?
Correct
do you get any benefits if resign after 5 years of your service to a company?
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.
If I’m only 6 months in my permanent position, am I entitled to maternity leave if I get pregnant at that 6 months stamp?
Hi, Maternity leave is granted after being continuously employed for one year.
Is 2 weeks vacation in Jamaica 14 days ( sat-sun ) or 10 days (mon-fri) ?
It refers to 2 ‘working’ weeks (in Jamaica a working week can be any of the 7 days, it depends on the agreed contractual schedule).
I have been with a company for 12 years. I resigned and got my vaca pay however I saw that its less than what it should be when I checked they took all the taxes out of it. Can they do that?
Hello, holiday pay is taxable in Jamaica.
Is there such a thing as grace period of 15 minutes to not be late for work in Jamaica
Hello, I am not aware of any law on grace period, this is usually up to the employer to decide the policy.
I have a Kindergarten School and staff are usually paid for the 3 months school is out on holidays. With the increase in minimun wage come June 01, I am in a quandry.
Hello, could you please clarify what your question is?
What does a contract worker entitled to after resignation
In Jamaica, there is no legal requirement for employers to provide severance pay upon voluntary resignation. However, some employment contracts or collective agreements may include provisions for severance pay upon resignation.
What is a domestic worker entitled to who has worked with the family for 12yrs but due to death of the Head of household the services are no longer required as there is no one left that needs the services? I am very confused
When an employer in Jamaica passes away, their estate, including the business, goes through the estate administration process. An executor or administrator is usually appointed to manage the deceased employer’s affairs, including employment matters. The business’s continuity depends on the specific circumstances. It may continue to operate under the administration of the estate, or it could be wound up. Decisions regarding business continuity, such as selling or closing the business, are typically made by the estate administrator or executor, we would recommend seeking legal local advice.
What should I do if my employer didn’t pay me
Hello, please provide more context. In most cases we recommend you seek local legal advice.
Good afternoon. If someone is engaged for 40 hours per week for approximately 5 months are they expected to pay statutory deductions?
Hello, all workers are required to pay statutory contributions.
Hi..I’m working as a helper/ nanny for eight months my boss said to me on the Monday of the work week that my service is no longer needed because of whatever reason but She will pay me for my two weeks notice pay..should I still work for that two weeks or should or is it that if I work I should still be getting paid for that two weeks along with my notice pay vacation pay and sick leave ? Thank you
Hello, I recommend you ask your boss to confirm if they are expecting you to work during this notice period or not.
If am employed for 4 years and 3 months and am being terminated, am I suppose yo expect any pay up for years of service? Or just unused vacation and 2 weeks notice pay?
Termination payout depends on the reason; typically, severance is only required in a redundancy scenario. Regular termination does not require any additional payment except for notice and owed salary/vacation/bonus etc.
My boss will be traveling overseas for two week and said I won’t be working for those two weeks am I entitled to be pay for those two weeks
I strongly suggest you check with your employer if they are expecting you to use annual leave for this period, or if this is seen as an additional leave – paid or unpaid.
Can a employer withhold your wage if they fire you before completing training
According to the Jamaican Termination and Redundancy Payments Act, an employer cannot withhold the final pay of an employee unless the employee is guilty of misconduct, dishonesty, or other justifiable cause. However, as this is a specific case, I would recommend seeking local legal advise.
Is an employee entitled to serverance pay after 53 years of service.
Severance is only required in cases of redundancy, the amount paid will vary depending on the length of service. Termination for other reasons does not entitle the worker to severance pay.
Am I not entitle to get 2 weeks off after working at a company for 1 year?
And is it a case where I cant get it in the month that I started working?
An employee in Jamaica who has worked for more than 220 days is entitled to 2 weeks of vacation leave.