Employer of Record in Jamaica

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.

Employment Contract Requirements

Jamaica's Constitution and the Employment Act of 1975 establish employee protections and workers rights, covering contract details such as:

• Minimum wage
• Overtime rates
• Guaranteed paid time off

Onboarding Process

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.

Working Hours in Jamaica

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

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.

Probation Period in Jamaica

In Jamaica, there is no mandatory probation period by law, but collective agreements often establish probation periods of 3 to 6 months.

Fiscal Year in Jamaica

1 April - 31 March is the 12-month accounting period that businesses in Jamaica use for financial and tax reporting purposes.

Payroll Cycle in Jamaica

The payroll cycle in Jamaica is usually monthly, with employees being paid by the end of the month.

Minimum Wage in Jamaica

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.

Bonus Payments in Jamaica

In Jamaica, there is no legal requirement for employers to provide 13th-month salary payments.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 12.5% on top of the employee salary in Jamaica.

Employee Payroll Tax Contributions

In Jamaica , the typical estimation for employee payroll contributions cost is around 7.25%.

Individual Income Tax Contributions

In Jamaica, income tax follows a progressive rate structure, ranging from 0% to 30%.

Pension in Jamaica

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.

Mandatory Leave Entitlement in Jamaica

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.

Public Holidays In Jamaica

In Jamaica, there are 10 recognized public holidays.

Paid Time Off in Jamaica

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.

Maternity Leave In Jamaica

Female employees who have completed a year with an employer receive 12 weeks/60 working days of paid maternity leave.

Paternity Leave In Jamaica

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

Sick leave in Jamaica is paid according to the following guidelines:

• In the first 12 months, an employee is entitled to one day of paid sick leave for every 22 days worked, where the employee has been employed for more than 110 days.
• After 12 months of employment, an employee is entitled to 10 days of paid sick leave

Parental Leave In Jamaica

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.

Termination Process in Jamaica

In Jamaica, employees can be terminated at will, but employers are obligated to provide written notice beforehand. Reasons for termination may include:

• Business-related
• Personal reasons
• Misconduct

Notice Period in Jamaica

Jamaican employees are entitled to advance notice before termination, based on their years of service:

• 2 weeks' notice for up to 5 years of service
• 4 weeks' notice for 5 to 10 years of service
• 6 weeks' notice for 10 to 15 years of service
• 8 weeks' notice for 15 to 20 years of service
• 12 weeks' notice for 20 or more years of service

Severance in Jamaica

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.