Americas - Jamaica

Jamaica

Last updated: Jul 22, 2024

Jamaica

Currency

$ (JMD)

Working Hours

40/Week

Jamaica is a Caribbean island, south of Cuba. It has an upper middle-income economy that sees modest growth. Two important sectors, tourism and agriculture, are vulnerable to external shocks, especially climate-related shocks. Jamaica’s economy also relies on mining. It has a labor force of around 1.5 million.

Employment Contracts

Employment contracts in Jamaica may be verbal or written. Written contracts should include terms identifying the parties, end date (if for a fixed term), job description, working hours, salary, bonus (if any) and other items agreed to by the parties. Employment contracts can be for a fixed term or an indefinite period. Pre-employment background checks are permitted. These can include medical check-ups and criminal background checks. Employers generally give advance notice of investigations to the candidate and ask for permission to conduct the background check.

Working Hours

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%.

Maternity, Paternity & Parental Leave

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.

Paternity Leave

Newborns’ biological fathers are allowed 20 paid workdays for paternity and adoption leave.

This benefit can be used three times in each government entity. It’s available to male employees, 18 or older, with at least a year of continuous service. The leave must be taken within six months of the child’s birth. For subsequent pregnancies, a gap of six months is required between leaves. The leave is also applicable in the unfortunate event of a stillbirth or if the infant passes away within six months of birth.

Other Types of Leave

Adoption Leave

New adoptive parents are granted 20 paid workdays for paternity and adoption leave.

This benefit can be used three times in each government entity. It’s open to employees, 18 or older, with at least a year of continuous service. Adoption leave can be taken all at once or in two parts, as per the employee’s request. The application must be backed by documents from the Child Protection and Family Services Agency (CPFSA) or the courts. Adoption leave can be taken once a year, only after a child has been placed with the family.

Health Insurance Benefits

Jamaica provides universal healthcare, though companies offer supplementary private insurance.

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

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.

Compensation

The weekly minimum wage in Jamaica is 13,000 JMD, (based on a 40 hour week).

Sick Leave

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.

Vacation Leave

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.

Date Day Holiday

1 Jan 2024 - Monday - New Year’s Day

14 Feb 2024 - Wednesday - Ash Wednesday

29 Mar 2024 - Friday - Good Friday

1 Apr 2024 - Monday - Easter Monday

23 May 2024 - Thursday - Labour Day

1 Aug 2024 - Thursday - Emancipation Day

6 Aug 2024 - Tuesday - Independence Day

21 Oct 2024 - Monday - National Heroes Day

25 Dec 2024 - Wednesday - Christmas Day

26 Dec 2024 - Thursday - Boxing Day

Employment/Termination/Severance

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.

To qualify for redundancy payment, the worker must be working at least 104 weeks or 2 calendar years continuously (uninterrupted service).

Payroll, Tax & Contributions

Employer Payroll Contributions
3.00% - National Insurance Scheme (NIS) (on maximum remuneration of 5 million JMD per year)

3.00% - National Housing Trust (NHT)

3.50% - Education Tax

3.00% - Human Employment & Resources Training (HEART)

12.50% Total Employment Cost

Employee Payroll Contributions
3.00% - (on maximum remuneration of 5 million JMD per year) National Insurance Scheme (NIS)

2.00% - National Housing Trust (NHT)

2.25% - Education Tax

7.25% - Total Employee Cost

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

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.

VAT

The standard rate of GCT in Jamaica is 15%.

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