- Platform
- Solutions
- Capabilities
- Resources
- Company
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 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.
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 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.
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.
Jamaica provides universal healthcare, though companies offer supplementary private insurance.
There is no statutory requirement for a probationary period in Jamacia. However, collective agreements generally stipulate a 3 to 6-month probation period.
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.
The weekly minimum wage in Jamaica is 13,000 JMD, (based on a 40 hour week).
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.
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.
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
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).
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.
The standard rate of GCT in Jamaica is 15%.
Partner with Helios
Partnering with Helios when expanding into South Africa can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.
Local Laws & Regulations
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
Our team of regional experts are here to support you with your global expansion plans. If you have any questions, contact us and we will be delighted to help.