Jamaica

Jamaica PEO & Employer of Record

WeHG provides an International PEO and vglobal Employer of Record service in Jamaica to companies willing to enter the Jamaica market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Jamaica.  However our solution allows you to start the operations in Jamaica within days hence save time and money.  WeHG would recruit candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Jamaica fast facts

Population, million:  2,961,167
Land area: 10,991 km²
Capital: Kingston
Local currency: Jamaican dollar (JMD)

GDP per capita:$ 4500.00
GDP in currency:$ 14.90 billion
Economic growth percentage: 1,6 %
Inflation rate (consumer prices): 5,1%
Volume of export: $ 498 million
Import of goods and services: $ 6.41 billion
Total population:  2,961,167
Population of working age (15-64): 69.7 %

Jamaica is located in North America and has a population of 2,961 million. The capital city of Jamaica is Kingston. In 1962, after years of internal self-government, Jamaica became an independent nation, but chose to remain a member of the British Commonwealth. Similar to Canada, Queen Elizabeth II remains the Queen of Jamaica but by tradition only.

Jamaica has natural resources, primarily bauxite, and an ideal climate conducive to agriculture and also tourism. The discovery of bauxite in the 1940s and the subsequent establishment of the bauxite-alumina industry shifted Jamaica’s economy from sugar and bananas.

Hiring, Negotiating and Doing Business in Jamaica

Necessity of written employment contract

In Jamaica, employment contracts can be oral or written, but it is best practice to put a strong, written contract in place, in English, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Jamaica should always state the salary and any compensation amounts in Jamaican Dollars rather than a foreign currency.

Jamaica Employment Contract

Types of employment agreements

Fixed-term contracts typically offer a lower level of protection to workers in terms of termination of employment as compared to contracts of indefinite duration. This is because the employer generally does not need to provide a justification for ending the employment relationship, as the FTC includes a set end date. In the majority of cases, no severance pay is paid. Convention No. 158 specifies that member States may exclude workers engaged under “a contract of employment for a specified period of time or a specified task” from all or some of the provisions of the Convention. However, it also provides that “adequate safeguards” must be provided against recourse to such contracts that would aim at avoiding the protection resulting from the Convention.

Jamaica working hours

Full-time employment is considered 40 hours weekly. Hours may be spread over 5 days if the worker chooses.

Overtime

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.  

Double time is paid on Sunday and Public Holidays.

Vacation 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.

Sick leave: 

Employees are entitled to 10 days of paid sick leave.

Jamaica Maternity Leave

Employees receive 56 days of paid maternity leave. For employees to receive benefits they must have 52 weeks of continuous employment and provide notice to the employer. 

Jamaica Severance Laws

Termination Process

Employers should provide a written statement or notify termination in front of a credible witness. A notice of termination must also be given.  

Notice Period

Employers are required to provide notice determined by the length of employment.

  • Up to 5 years of employment entitles workers to 2 weeks’ notice.
  • 5-10 years entitles workers to four weeks’ notice.
  • 10-15 years entitles workers to 6 weeks’ notice.
  • 15-20 years entitles workers to 8 weeks’ notice.
  • 20 + years entitles workers to 12 weeks notice

Severance Pay

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 Tax

Individuals are generally liable to income tax at the rate of 25% on their chargeable income (not exceeding 6 million Jamaican dollars [JMD] per annum) less an annual tax-free threshold (where applicable). Chargeable income derived in excess of JMD 6 million per annum is subject to income tax at a rate of 30%.
Pension – employer voluntary contribution up to 20% of salary. This is additional to 2.5% compulsory for NIS

Health Insurance Benefits in Jamaica

Health care in Jamaica is free to all citizens and legal residents at government hospitals and clinics.

Additional Benefits in Jamaica

There is no statutory requirement for a bonus payment to be made to employees in Jamaica. However, in some cases, the employer’s legal obligation to pay may arise by virtue of the employment contract.

Jamaica Holidays

  • New Year’s Day
  • Ash Wednesday
  • Good Friday
  • Easter Monday
  • Labour Day
  • Emancipation
  • Independence Day
  • National Heroes Day
  • Christmas Day
  • Boxing Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding obstacles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Jamaica

  • Working hours in Jamaica

    Full-time employment is considered 40 hours weekly. Hours may be spread over 5 days if the worker chooses.

  • What are the main holidays in Jamaica?

    • New Year’s Day
    • Ash Wednesday
    • Good Friday
    • Easter Monday
    • Labour Day
    • Emancipation
    • Independence Day
    • National Heroes Day
    • Christmas Day
    • Boxing Day
  • What are payroll taxes in Jamaica?

    Individuals are generally liable to income tax at the rate of 25% on their chargeable income (not exceeding 6 million Jamaican dollars [JMD] per annum) less an annual tax-free threshold (where applicable). Chargeable income derived in excess of JMD 6 million per annum is subject to income tax at a rate of 30%.
    Pension – employer voluntary contribution up to 20% of salary. This is additional to 2.5% compulsory for NIS.

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