Capital City
Kingston
Currency
Jamaican Dollar
(
J$
)
Timezone
GMT-5
Payroll Frequency
monthly
Tax Year
1 April - 31 March
Employer Tax
12.50%
Languages
English
Capital City
Kingston
Currency
Jamaican Dollar
(
J$
)
Timezone
GMT-5
Payroll Frequency
monthly
Tax Year
1 April - 31 March
Employer Tax
12.50%
Languages
English
Hiring in Jamaica for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.
Companies can hire employees in Jamaica in the following three ways:
Employers find hiring in Jamaica advantageous due to the availability of skilled workers seeking competitive global wages while staying in their home country, despite its economic challenges.
Jamaica's location within the Eastern Standard Time (EST) or Eastern Daylight Time (EDT) zone (UTC-5/-4) facilitates real-time collaboration with North American companies, enhancing operational efficiency.
The country's stunning natural beauty, vibrant nightlife, and pristine Caribbean coastline attract over one million tourists annually, offering an appealing environment for both employees and visitors.
Additionally, Jamaica's thriving Creative and Tourism Industry makes it a prime destination for hiring diverse talent, particularly in hospitality services.
Businesses can only operate smoothly in Jamaica if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Jamaica below, to avoid any compliance issues.
Jamaica's Constitution and the Employment Act of 1975 establish employee protections and workers rights, covering contract details such as:
We can help you get a new employee started in Jamaica quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
Full-time employment in Jamaica is typically 40 hours per week, equating to eight hours per day. The workweek includes all seven days, including Sunday, but shifts may not exceed 12 hours on a day.
Overtime in Jamaica refers to work beyond 40 hours a week, on rest days, or holidays. Beyond 40 hours, employees are compensated at 150% of their salary.
In Jamaica, there is no mandatory probation period by law, but collective agreements often establish probation periods of 3 to 6 months.
1 April - 31 March is the 12-month accounting period that businesses in Jamaica use for financial and tax reporting purposes.
The payroll cycle in Jamaica is usually monthly, with employees being paid by the end of the month.
The minimum wage for employees in Jamaica is typically 375 JMD per hour, amounting to ~60,000 JMD per month for a typical 40 hour work week.
In Jamaica, there is no legal requirement for employers to provide 13th-month salary payments.
Employer payroll contributions are generally estimated at an additional 12.5% on top of the employee salary in Jamaica.
In Jamaica , the typical estimation for employee payroll contributions cost is around 7.25%.
In Jamaica, income tax follows a progressive rate structure, ranging from 0% to 30%.
In Jamaica, while there are no mandatory pension contributions, individuals often opt to contribute to private pension plans or retirement savings schemes voluntarily. These plans are typically offered by employers or financial institutions and allow individuals to save for retirement.
The annual leave entitlement in Jamaica is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
In Jamaica, there are 10 recognized public holidays.
In Jamaica, employees receive two weeks of paid leave each year, Three weeks of paid leave are given to those with over ten years of continuous service.
Female employees who have completed a year with an employer receive 12 weeks/60 working days of paid maternity leave.
Eligible fathers receive up to 20 working days of paid leave, which can be taken within the first six months following the child's birth.
Sick leave in Jamaica is paid according to the following guidelines:
There is no provision for shared parental leave in Jamaica, where parents can divide a set amount of leave between them. Besides maternity and paternity leave provisions, adoptive parents receive 20 working days of paid leave upon the placement of a child.
In Jamaica, employees can be terminated at will, but employers are obligated to provide written notice beforehand. Reasons for termination may include:
Jamaican employees are entitled to advance notice before termination, based on their years of service:
Employees in Jamaica receive severance payments exclusively in cases of redundancy, and where the employee has been in continuous service for at least 104 weeks. The employee is entitled to two weeks' pay per year for the initial ten years of employment and three weeks' pay for each subsequent year thereafter.
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