Definitive Guide to Hiring in Jamaica

Hiring in Jamaica

Hiring employees compliantly in Jamaica means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Jamaica so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Jamaica or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Jamaica

Employment laws in Jamaica are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Jamaica employment laws and Jamaica policies here.

Employee Probation Period

Annual Leave in Jamaica

• Employees are granted 2 weeks of paid leave per year. 
• 3 weeks of paid leave is granted to employees with over 10 years of continuous service.

Holidays in Jamaica

Maternity Leave Jamaica

Paternity Leave Jamaica

Sick Leave in Jamaica

Working Hours in Jamaica

Overtime in Jamaica

• Overtime is defined as work exceeding 40 weekly hours, work on a rest day, or work on a holiday. 
• Overtime pay is 150% the normal pay for each additional hour worked, or whatever contractual agreement the employee and employer have agreed upon.

Termination of Employment in Jamaica

• An employee who resigns or voluntarily quits his or her employment is not entitled to termination pay or working notice. 
• In order to be eligible for termination pay or notice of termination, an employee must have worked at least three consecutive months for the employer.
• The notice required to be given by an employer to terminate the contract of employment of employees’ who have been continuously employed for four weeks or more shall be
  • not less than two weeks’ notice if his period of continuous employment is less than five years; 
  • not less than four weeks’ notice if his period of continuous employment is five years or more but less 
  • not less than six weeks’ notice if his period of continuous employment is ten years or more but less than fifteen years; 
  • not less than eight weeks’ notice if his period of continuous employment is fifteen years or more but less than twenty years;
  • not less than twelve weeks’ notice if his period of g/m continuous employment is twenty years or more,
• Severance pay is only required for cases of redundancy. 
• Severance for redundancy is 2 weeks’ pay per year for the first 10 years and 3 weeks´ pay per year, from the 10th year onwards. 

Notice Period in Jamaica

• The notice required to be given by an employer to terminate the contract of employment of employees’ who have been continuously employed for four weeks or more shall be
  • not less than two weeks’ notice if his period of continuous employment is less than five years; 
  • not less than four weeks’ notice if his period of continuous employment is five years or more but less 
  • not less than six weeks’ notice if his period of continuous employment is ten years or more but less than fifteen years; 
  • not less than eight weeks’ notice if his period of continuous employment is fifteen years or more but less than twenty years;
  • not less than twelve weeks’ notice if his period of g/m continuous employment is twenty years or more,

Severance in Jamaica

• Severance pay is only required for cases of redundancy. 
• Severance for redundancy is 2 weeks’ pay per year for the first 10 years and 3 weeks´ pay per year, from the 10th year onwards.

Jamaica Salary and Wages

13th/14th Month Salary in Jamaica

• No
• There is no statutory requirement to pay the
• 13th or 14th month salary.
  It does not seem customary that it is paid to employees.

National insurance scheme (NIS) contributions

• Employees and self-employed persons are required to be insured under a state-administered programme of social security insurance.
• Employees and employers contribute at a rate of 3% (each) on a maximum remuneration of JMD 1.5 million per annum.
• Self-employed persons contribute at a rate of 6% on maximum earnings of JMD 3 million per annum.
• The income threshold for both employed and self-employed individuals increased to JMD 5 million per annum with effect from 1 April 2022.
• NIS contributions are tax deductible.

Immigration Jamaica

• Foreign nationals from certain specified countries may visit Jamaica without a visa depending on the landing options available to them. 
• The specified countries are the CARICOM member states and British Commonwealth countries except for the British Virgin Islands, the Cayman Islands, Nigeria, Pakistan and Sri Lanka. 
• A visa is required for all foreign nationals coming to Jamaica to work except for the countries specified above. 
• The right to work in Jamaica is relatively restricted. 
• The Ministry of Labor and Social Security and the Ministry of National Security are responsible for ensuring that employment opportunities are made available to Jamaican citizens and permanent residents before being offered to foreign nationals. 
• Foreign nationals coming to Jamaica to work are required to have valid work permits and visas if they are not citizens from specified CARICOM and British Commonwealth countries. 
• Work permit exemptions may be available to citizens from CARICOM member states who have obtained CARICOM Skills Certificates. 
• The duration of the work permit period can be based on the employment contract and may be granted for a maximum of three years. 
• Work permits are renewable but are not transferable. 
• The Ministry of Labor and Social Security requires 8 to 12 weeks to process a work permit application. 
• The Ministry of National Security requires three working days to process a resident permit and a visa. 
• The work permit process requires the Jamaican employer to submit the work permit application on behalf of the foreign national to the Ministry of Labor and Social Security prior to the national commencing an assignment in Jamaica. 
• If approval is granted, the foreign national must apply to a Jamaican consulate abroad to obtain a visa before arriving in Jamaica. 
• An application to the Immigration Department and the Ministry of National Security must then be completed to register the foreign national for employment. 
• A self-employed person must apply to the Ministry of Labor and Social Security for a work permit and then apply to the immigration department of the Ministry of National Security for a visa and registration.

Value Added Tax (VAT) in Jamaica

• GCT is a value-added tax (VAT), and the standard rate is currently 15%. Higher or lower rates of GCT are applicable to certain goods and services.
• For example, the provision of telephone services (including phone cards) and handsets is subject to GCT at the rate of 25%, while the tax is imposed on hotels and other businesses in the tourism sector at an effective rate of approximately 10%.

Payments And Invoicing

Payroll Accrual in Jamaica

Country Accruals Additional Information

Description

Employees and self-employed persons are required to be insured under a state-administered programme of social security insurance. Employees and employers contribute at a rate of 3% (each) on a maximum remuneration of JMD 1.5 million per annum. Self-employed persons contribute at a rate of 6% on maximum earnings of JMD 1.5 million per annum. The income threshold for both employed and self-employed individuals is programmed to increase to JMD 3 million per annum with effect from 1 April 2021 and to JMD 5 million per annum with effect from 1 April 2022. NIS contributions are tax deductible.

NHT contributions are made by employers at the rate of 3% while employees contribute at the rate of 2% on all taxable emoluments received from employment in Jamaica. Self-employed persons also contribute at a rate of 2% of earnings. An employer's contribution is tax deductible but that of an employee is not.

Payroll Accruals Additional Information

Accrued Benefits in Jamaica

Why use Global Expansion to hire in Jamaica

Establishing a branch office or subsidiary in Jamaica can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Jamaica labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Jamaica law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Jamaica. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Jamaica Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.