Employer of record in Jamaica
We make it easy and painless to expand your business into Jamaica. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.
Accelerate your growth into Jamaica compliantly and hassle-free
How we can help you expand in Jamaica
As your EOR in Jamaica we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Your candidate is hired by a PEO in Jamaica provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.
Expand to Jamaica with Serviap Global
Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity.
In just a few days, you can easily and safely build a presence in Jamaica, being sure that your staff will be hired in compliance with labor and tax regulations
Table of contents
Jamaican Dollar (JMD)
Jamaica is based on a mixed economy which includes service/hospitality, aluminum, and agricultural products. Manufacturing makes up about 12% of the national GDP whilst trade makes up 25 % of the GDP.
The government of Jamaica encourages foreign investments which generate jobs, they are also a member of the Caribbean Basin Trade Partnership Act (CBTPA) and the Caribbean Community and Common Market (CARICOM). When it comes to the financial sector, it is dominated by commercial banks and their central bank here is the Bank of Jamaica.
Small and medium businesses
Small and medium businesses contribute about 40% to the GDP but they constitute 95% of companies, only about 13% of which contribute to exports. Small and medium businesses in Jamaica suffer from a lack of transparency, business owners often use their personal bank account for business transactions, but cannot come up with the proper paperwork to satisfy loan applications. This gives foreign investors an edge.
Jamaica started the Export Max Development program with the aim to assist companies in exporting more goods. The program collaborates with the Jamaica Promotions Corporation, the Caribbean Exports, and other groups.
Starting a business
To start a business, a person needs to first get a working permit by contacting the Jamaican Ministry of Labor and working with the Work Permit Department of the Ministry of Labor. The work permit will cost between JM$27,000 to JM$108,000 for a year. The next step is to apply to the Companies Office of Jamaica to register the business; there are three main choices: a sole proprietorship, a partnership or a corporation.
The person will then need to apply to the Companies Office of Jamaica and fill out a Registration of Business Names. After this you must file a balance sheet and a profit-and-loss statement with the Companies Office of Jamaica and submit a copy of Jamaican Form 31 and a copy of the articles of incorporation.
There are many things that payroll contributes to in terms of taxes. The employee contributions are 3% for the National Insurance Scheme, 2% for the National Housing Trust, 2.25% for the Education Tax, for a total of 7.25%. The employer contributions are 3.0% for the National Insurance Scheme, 3% for the National Housing Trust, 3.5% for the Education Tax, and 3% for the Human Employment & Resources Training, for a total of 12.5%
|Salary||Minimum wage is JM$9,000 to JM$13,000 per week.|
|Payroll||Employees are typically paid monthly or semi-monthly.|
|Wages||The median salary is JM$2,112/yr|
|Overtime||Overtime pays 200% of the normal pay or it is based on an agreement.|
Leaves of absence
Employees have the right to paid absences for the following things:
• Vacation/Sick leave:
After employees work 110 days, they should get one sick day for every 22 days they work. Employees have two weeks of paid leave per year once they have worked for a full year. If an employee has worked more than 10 years, then she may request three weeks of paid leave.
• Maternity Leave:
Maternity leave is 12 weeks, but only after the employee has worked for a year. The first 8 weeks pay the regular salary amount.
There are several acts that offer relief for tax: Urban Renewal (Tax Relief) Act to encourage redevelopment in blighted urban areas across Jamaica, The Income Tax Act, the Bauxite and Alumina Industries Act which allows for special provisions for bauxite, alumia and other related enterprises, and the Charities Act which makes provisions for charities. Jamaica avoids double taxation by using foreign tax credits available under different tax treaties.
Jamaica wants to make 20% of its electrical energy renewable by the year 2030, since the island is bathed in sunlight, it is well suited for solar energy. Jamaica started the Wigton Wind farm as part of its renewable energy strategy and is also looking into biomass by harnessing the sugarcane and coffee residues.
The food culture is inspired by West Africa. Roasted meats with fried fish and rice are common. A popular dish is Jerk Chicken, which is made with scotch bonnet pepper, scallion, onions, pimento, and thyme. They also eat goat curry and other meats such as beef, pork, and chicken.
With access to tropical fruits such as mango, banana, coconut, pineapple and guava, fresh fruit juice is popular. Jamaicans like to eat a good breakfast which typically consists of tea, salt fish, roasted breadfruit or boiled
The Jamaican population is 2,827,377 and about half of them live in urban areas with an official language of English, but Jamaican creole is also widely spoken. The Jamaican people are mostly Christians with 64.8% protestants, there are also many Seven-day Adventist and Pentecostal churches.
The country motto reflects a mixed heritage, “Out of many, one people”. This reflects their love of good discussions and spending time together in closely knit neighborhoods. They have a strong sense of entrepreneurship and they work hard to establish financial security with a great literacy level of about 88.1%.
Jamaica is part of a chain of islands that make up the northern edge of the Caribbean Sea and it lies just south of Cuba. About 80% of the island is mountainous and about 11% of the landscape is suitable for cultivation.
Jamaica enjoys a tropical maritime climate with temperature varying between 70 to 90 degrees Fahrenheit, although the dry season temperatures are cooler the island enjoys full days of sunshine. Because of this it is home to a large biodiversity of plants and birds.
Jamaica is the 6th easiest country in the world to do business and the best in the Caribbean, so if you’re looking to move to somewhere hot and beachy this is the best place for you.
Num. States / Province
There are 14 parishes in Jamaica, these are: Surrey, Kingston, St. Andrew, Portland, St. Thomas, Middlesex, St. Catherine, St. Mary, St. Ann, Manchester, Clarendon, Cornwall, Hanover, Westmoreland, St. James, Trelawny, St. Elizabeth
Thousands separator format
Country dial code
The closest countries to Jamaica are Cuba and Haiti.
1 April – 31 March
JM$9,000 to JM$13,000 per week
Taxpayer identification number name in the country
The Tax payer registration number (TRN)
What you need to know about employing personnel in Jamaica:
Laws and agencies that regulate labor relationships
Employment law in Jamaica is divided into two parts: Individual Employment Law and Collective Employment Law. Individual employment law is about relations between the employee and the employer, and collective law is the collective representation and organization of employees.
This includes their rights, and obligations of the representatives for employees. There is no main labor code, instead there is Federal Legislation, case law, collective bargaining agreements, works council agreements and individual employment contracts.
Laws for staffing in Jamaica
• Factories Act
• Employment (Equal pay for men and women) act
• Workmen’s compensation act
• Holidays with pay act
• Maternity leave act
• Minimum wage act
|Recruiting of workers act|
You cannot hire anyone under the age of 18 and those you recruit will need to go before a justice and get a medical examination.
|ACP, AOSIS, C, Caricom, CDB, CELAC, FAO, G-15, G-77, IADB, IAEA, IBRD, ICAO, ICC (NGOs), ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, ISO, ITSO, ITU, LAES, MIGA, NAM, OAS, OPANAL, OPCW, Petrocaribe, UN, UNCTAD, UNESCO, UNIDO, UNITAR, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO|
|Labor code||No one labor code|
|Social Security||The National Insurance scheme|
Key tax and labor authorities
|The Ministry of Labour and Social Security||This is a part of the government that deals with family services, child labour, disaster relief, social security, early stimulation programme, and more.|
Tax Administration Jamaica
This is responsible for tax administration.
|Contracts can be oral or written. But best practice is a written contract in English. It should state the salary, compensation amounts in Jamaican dollars, working hours, job description, bonus and offer letter.|
|Background checks||In this country background checks before employment are permitted, but employers tend to give advance notice before doing one.|
|The standard work week is 40 hours over 7 days. It is common for individual and collective agreements to detail how many hours and on which days the employee will work.|
Annual taxable income
Income tax for individuals in Jamaica is generally at a rate of 25% on income in excess of the annual tax-free threshold, whatever that may be that year. However, if an individual has an income that exceeds JM 6 million per annum it is subject to 30% income tax.
Corporate tax rates
Mostly the corporate tax rate is 25% for listed companies and 35% for unlisted companies or private limited companies. But for banks and other financial institutions this increases to 37.5% for listed and 40% if not.
|1 Jan||New Year’s Day|
|2 Mar||Ash Wednesday|
15 Apr or the friday before the first sunday after the full moon that occurs on or after the spring equinox
The first Sunday after the full Moon that occurs on or after the spring equinox
|Monday after Easter Sunday||Easter Monday|
|23 May||Labour Day|
|1 Aug||Emancipation Day|
|6 Aug||Jamaican Independence Day|
|17 Oct||Heroes’ Day|
|26 December||Christmas Day|
|27 December||2nd Day of Christmas|
|Type of termination||Brief description|
|Employers can terminate employment, as can the employee. The employment also ends at the end of the contract term. An employer can also terminate employment for gross misconduct without providing severance or notice.|
|If unjust dismissal occurs there is no statutory determination. If a litigation arises then the Judicial Power or the Industrial Disputes Tribunal will decide what compensation is needed.|
|If an employee has been with the company for two years then they are eligible for severance, this is called redundancy payment.|
|Employees with at least four weeks with the company must receive 2 weeks of notice before being let go. Pay can also be provided in lieu of notice. This notice must be given in writing and in front of a witness.|
|During the probation period an employer may dismiss an employee for gross misconduct without providing notice or paying severance.|
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