Updated on: 2025/08/04 14:26 (UTC)
Overview
Jamaica is an island country that is a constitutional parliamentary democracy located in the Caribbean sea, south of Cuba and west of Haiti.
Jamaica consists of 14 first-order administrative divisions known as parishes. They are Clarendon, Hanover, Kingston, Manchester, Portland, Saint Andrew, Saint Ann, Saint Catherine, Saint Elizabeth, Saint James, Saint Mary, Saint Thomas, Trelawny, and Westmoreland.
Jamaica’s currency is the Jamaican dollar.
Employers in Jamaica are responsible for withholding income taxes and social taxes from employees’ paychecks in addition to making social tax contributions. Employers are also required to uphold compensation and benefits standards.
Foreign workers in Jamaica are subject to the same rate of income tax as Jamaican residents and generally are covered by the same labor laws.
Jamaican citizens working in the United States are covered by U.S. tax law with possible treaty and work status exclusions applying. Work within the U.S. states and territories is covered by various labor laws.
CURRENCY DETAILS
The currency of Jamaica is the Jamaican dollar (J$). The internationally recognized three-letter currency code for the Jamaican dollar is JMD. The plural form of Jamaican dollar is Jamaican dollars.
When an amount of Jamaican dollars is written using the currency symbol J$ or one of its variants ($J, JA$, and $JA) to distinguish Jamaican dollars from other dollar currencies, and when Jamaican documents use the general dollar currency symbol $ to refer to Jamaican dollars, the symbol precedes the numerical value with no space between the numerical value and symbol.
One hundredth ( 1 ⁄ 100 ) of a Jamaican dollar is referred to as a cent, with the plural form of cents.
TAXES
Jamaica’s national government enacts laws relating to income tax and social tax.
The tax year in Jamaica is April 1 to March 31.
Income Taxes
Income taxes are administered by the Tax Administration of Jamaica (TAJ), also called the Tax Collectorate.
Coverage: All individuals are subject to the income tax law if they reside in Jamaica and own any property on the island or if they take part in any trade, business, profession, employment or vocation in Jamaica or elsewhere.
Individuals are considered residents of Jamaica if they are present in Jamaica at least 183 days out of the year. These individuals are subject to pay-as-you-earn (PAYE) income tax withholding. Nonresidents are defined as any individual in Jamaica less than 183 days in a year. Nonresidents are also liable to PAYE income tax withholding for any work performed within Jamaica.
Employees: Employees are defined as any individual who is obligated to render personal services to another person, defined as the employer, under terms of a contract or arrangement.
Rates and Thresholds: Income tax rates are levied on a progressive scale, with rates ranging from zero to 30%. In Jamaica’s progressive income tax system, portions of an individual’s income are allocated to the country’s personal income tax brackets, and each portion of income allocated to a tax bracket is taxed at the tax rate applicable to that tax bracket.
Effective since Jan. 1, 2018, Jamaica’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:| Range of Annual Income (Jamaican Dollars) | Income Tax Rate |
|---|---|
| Up to J$1,500,096 | Zero |
| More than J$1,500,096 and up to J$6 million | 25% |
| More than J$6 million | 30% |
Registration: All taxpayers must obtain a Taxpayer Registration Number (TRN). Businesses must receive a TRN by completing an application with the Tax Administration at the Tax Registration Center (TRC). Employers are required to ensure that each of their employees also obtains a TRN. Individuals can apply for a TRN by filling out an application with the Tax Administration.
The form for applying for a TRN is entitled Application for Taxpayer Registration (Individuals) and must be submitted to the tax authority with the supporting documents listed on the tax administration website.
Taxable Amounts: Amounts subject to income tax include: all salaries, wages, overtime pay, fees, bonuses, perquisites, annuities, pensions, and all other benefits from employment. Amounts not subject to income tax include: amounts paid to employees for meal allowances, overtime work and allowances given for employment uniforms.
Withholding Methods: Employers are required to withhold income tax from employees’ paychecks under the PAYE system at the rates prescribed by the tax authority. The tax withholding schedule includes social tax and other employment tax obligations.
Returns and Remittance: Remittances must be made monthly by the 14th of the month following the month in question. Remittances are to be made using the S01 Employers’ Remittance Form. Returns must be made yearly and submitted by March 31 following the year in question using form S02. All forms must be submitted to the Tax Administration of Jamaica. Tax Administration Jamaica requires all employers to submit their S02 form online. Returns filed manually are not accepted.
Employee Share Plans: All information regarding taxation of Employee Share Plans is located within the Employee Share Option Plan Law of Jamaica.
Generally, employees are not subject to income tax on the acquisition of shares acquired or allocated under approved employee financed purchase schemes. When funds are provided or loaned by an employer for the acquisition of ESOP shares by an employee, the employee is exempt from income tax on the value of ESOP stock purchased. Under other share option plans, employees may purchase options allowing them to capture, without being subject to income tax, the appreciation of share value through the exercise of the option.
Generally a six-year holding period on the shares is necessary to completely avoid income tax on the value of the stock or interest or appreciation once the shares or options have been released, transferred or otherwise exercised. Tax applies as follows:
- 100% of the value or interest is subject to income tax for transfers or exercises occurring within the first three years;
- 75% of the value or interest is subject to income tax for transfers or exercises occurring within the fourth year;
- 50% of the value or interest is subject to income tax for transfers or exercises occurring within the fifth year; and
- 25% of the value or interest is subject to income tax for transfers or exercises occurring within the sixth year.
Employers must file an annual report by an independent auditor within four months after the end of each year of assessment stating the assets and liabilities of the plan and the value of ESOP shares and share options for each year of assessment. In addition, employers are required provide the Commissioner with a certificate signed by an independent auditor as evidence that: a plan was operated during a year of assessment in accordance with its terms and the provisions of the ESOP Act, and where in any year of assessment any of the employees in a plan were related enterprise participants, as regards to those participants, a significant economic relationship was maintained with the participating employer in that year of assessment.
Recordkeeping: Income tax records must be held for up to six years.
Penalties: Penalties vary depending on the severity of the crime and can be fines ranging from J$5,000 to J$1,000,000. Penalties can also include prison sentences of up to two years.
Social Taxes
Social Taxes are administered by the National Insurance Scheme, which is managed by the Ministry of Labor and Social Security. Benefits that are covered by social taxes include: retirement, invalidity, workers’ compensation, pensions, and funeral grants.
Coverage: Employees covered for social taxes includes all individuals over the age of 18 and under the retirement age gainfully occupied in a position of insurable employment.
Rates and Thresholds: Employers are required to contribute 2.5% of an employee’s gross pay to the National Insurance Scheme. Employees are required to contribute 2.5% of gross pay up to a wage ceiling of J$1,500,000 a year to social taxes. The ceiling for contribution amounts is J$37,500 a year and J$3,125 a month.
Registration: All individuals over the age of 18 are required to register with the National Insurance Scheme and receive a National Insurance Number, or NIN. An application form for receiving a NIN can be found on the website of the Ministry of Labor and Social Security.
Taxable Amounts: Amounts subject to social taxes are defined as: salaries, wages, overtime pay, fees, bonuses, perquisites and pay for accommodation or entertainment.
Withholding Methods: Employers are required to withhold income tax from employees’ paychecks under the income tax pay-as-you-earn (PAYE) system at the rates prescribed by the tax authority.
Returns and Remittance: Remittances must be made monthly by the 14th of the month following the month in question. Remittances are to be made using the S01 Employers’ Remittance Form. Returns must be made yearly and submitted by March 31 following the year in question using form S02. All forms must be submitted to the Tax Administration of Jamaica.
Recordkeeping: Social tax records must be held for up to six years.
Penalties: Penalties for noncompliance in regards to any law on social tax are liable to fines ranging from J$150 to several thousand Jamaican dollars and/ or imprisonment with or without hard labor for a period of time determined by the severity of the crime. Employers who do not make timely contributions will owe, as a penalty, the amounts not paid with interest.
Other Taxes
Employers and employees are required to pay several other taxes in Jamaica. Both employers and employees must contribute to the National Housing Trust (NHT), employers at a rate of 3% and employees at 2% of income. Employers and employees must also pay an education tax, employers at a rate of 3.5% of income and employees at a rate of 2.25% of income.
Employers must contribute to Human Employment and Resource Training (HEART) at a rate of 3% of total payroll if their gross taxable payroll exceeds J$173,328 a year.
All taxes must be remitted to the Tax Administration of Jamaica by the 14th of the month following the month in question. All forms for returns and remittances can be found on the Tax Administration website. Form S01 is used for all PAYE deductions, including income tax, social tax and other taxes.
State/Jurisdiction Taxes
Taxes on employment income are not assessed by any of Jamaica’s parishes or local jurisdictions.
COMPENSATION AND BENEFITS
Several labor laws in Jamaica exist that together cover regulations regarding minimum wage, overtime, hours of work, holidays, leave, wage payment and termination pay. Workers’ compensation and retirement plans are covered under social taxes.
Minimum Wage
Jamaica has a generally applicable national minimum wage and a minimum wage specifically for the security guard industry.
Effective since Aug. 1, 2018, the standard national minimum wage is J$7,000 per 40-hour workweek. Effective from March 1, 2016, to July 31, 2018, the standard minimum wage in Jamaica was J$6,200 per 40-hour workweek.
Effective since Aug. 1, 2018, the minimum wage for security guards is J$9,700 per 40-hour workweek. Effective from March 1, 2016, to July 31, 2018, the minimum wage for security guards was J$8,854 per 40-hour workweek.
Overtime
Overtime work is defined as any work done beyond eight hours a day or work done on a rest day, Sunday, or holiday.
Hours of Work
A standard work day in Jamaica is eight hours and a standard work week is 40 hours.
Holidays
Employers are required to give employees holidays as nonworking days with full pay.
The public holidays in Jamaica are:
- Jan. 1: New Year’s Day
- Ash Wednesday
- Good Friday
- Easter Monday
- May 23: Labor Day
- Aug. 1: Emancipation Day
- Aug. 6: Independence Day
- October: National Heroes’ Day
- Dec. 25: Christmas Day
- Dec. 26: Boxing Day
Leave
Employers must give employees paid annual leave at the following rates:
- For employees who have worked greater than 110 days but less than 220 days, one day of paid leave per 22 days worked;
- For employees who have worked at least 220 days, two weeks of paid vacation; or
- For employees who have worked 220 days a year for the past 10 years, three weeks of paid vacation.
Maternity Leave: Employers are required to give pregnant employees 52 weeks of leave. The maternity allowance given to employees during this leave is equal to the national minimum wage.
Sick Leave: Employers are required to give employees who have served at least 110 days one day of paid sick leave per every 22 days worked. After a year of employment, employers are required to give employees two weeks of paid sick leave per year. Sick leave is paid at the rate of an employee’s normal remuneration.
Wage Payment
Wages are generally paid in Jamaica on a weekly, fortnightly (every two weeks), or monthly basis. Wages can be paid in currencies that are officially recognized by the Jamaican Tax Administration.
Bonuses and Special Benefits
Jamaica does not mandate employers to provide bonus payments to employees.
Termination Pay
Employers are required to give an employee notice of termination according to an employee’s length of service.
Employers are required to pay employee’s a redundancy payment equal to two weeks of pay for each year worked up to 10 years of work. For each year worked after 10 years, employers are required to pay an employee three weeks of pay per year worked.
Workers’ Compensation
Workers’ Compensation is covered under social taxes.
Recordkeeping
Employers are required to keep a record of employment related information for each employee and must keep wage records for employees for up to six years.
FOREIGN WORKERS
Foreign workers are entitled to the same rights as Jamaica citizens and are generally covered by the same tax and workplace laws, with the exception that they must pay income tax on the first Jamaican dollar earned instead of being subject to a threshold for income tax.
Visas: Generally, North American citizens can travel to Jamaica for business and leisure without having to obtain a visa. Foreign workers are required to apply for work permits through the Ministry of Labor to perform business activities in Jamaica. After staying 180 days in any 12 month period, individuals are required to obtain a visa.
Taxes: Nonresidents pay income tax from the first Jamaican dollar earned at a flat rate of 25%.
Wages/Payments: There is no provision specifically prohibiting employers from paying employees in another currency other than the Jamaican dollar.
WORKING IN THE UNITED STATES
Foreign workers from Jamaica must meet general visa requirements and be certified to be employed in the United States. General visa requirements for the U.S. are included in the separate
U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.
Jamaican workers are eligible to work in the U.S. under H-2B visas, which cover labor or services of a temporary or seasonal nature in occupations other than agriculture or registered nursing. The number of H-2B visas issued each year is limited by U.S. law.
For tax purposes, Jamaican citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under certain tax treaty provisions or they work under specific visa types that exempt earnings from taxes. Jamaica has both a tax treaty and a social tax totalization agreement with the U.S.
State and local taxation of Jamaican workers also can apply, although some states within the U.S. recognize international tax treaties that can eliminate that income tax liability for foreign workers.
The U.S. labor laws apply to all workers employed and providing services in the country.
Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.
Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the
Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.
Income Taxes: Generally, nonresidents in the U.S. who are from Jamaica and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.
A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Jamaica and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c.
Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the
Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.
An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the
Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.
Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.
Tax treaties: Jamaica and the U.S. have a tax treaty with provisions addressing host country taxation of the nonresident workers. To claim the tax treaty benefit, the nonresident must file Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with the employer. Separate requirements apply under the totalization agreement.
Students, trainees and teachers in particular must include a statement with Form 8233 to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. This statement affirms that the student, trainee, teacher or researcher is temporarily in the U.S. for purposes of studying or has accepted an invitation by the U.S. government (or by a political subdivision or local authority) for the purpose of teaching or engaging in research for a period of two years for teachers and 12 consecutive months for students by a university or other recognized educational institution in the U.S. It also must affirm that the individual will receive compensation for services performed in the U.S. The student exemption is not to exceed $7,500 a year; no limit is placed on the teacher compensation for Jamaican residents.
Examples of the statements necessary to claim a treaty exemption from U.S. taxes are included in Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens.
Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.
Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.
Totalization Agreements: Jamaica and the U.S. have not entered into a totalization agreement.
Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.
There are no particular requirements that employees be paid in U.S. dollars.
TREATY ARRANGEMENTS
Jamaica has entered into more than 10 income tax treaties, including an income tax treaty with the United States and a multilateral income tax treaty, the Caribbean Community (CARICOM) double taxation avoidance treaty, which is in effect for Jamaica and 11 other CARICOM members. Jamaica also has a totalization agreement for social tax coverage purposes with 10 other CARICOM members.
Jamaica’s tax treaties are available in
RESOURCES
General
U.S. State Department: U.S. Relations With Jamaica
CIA World Factbook: Jamaica
Embassy of Jamaica in Washington, D.C.
Currency Details
International Organization for Standardization: Currency Codes - ISO 4217
Unicode Consortium: Currency Symbols
United Nations: United Nations Terminology Database: Jamaica
Taxes
Tax Administration of Jamaica
Ministry of Finance
Social Security Programs Throughout the World: Jamaica
Income Tax Act
Income Tax Chart
Taxes and Contributions
Q&A: Taxpayer Registration Number
Ministry of Labor and Social Security
Compensation and Benefits
Ministry of Labor and Social Security
Bank of Jamaica: Public Holidays
Foreign Workers
Embassy of Jamaica in Washington, DC
Ministry of Foreign Affairs and Foreign Trade
Working in the United States
U.S. Internal Revenue Service:
- IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
- IRS Publication 15, Circular E, Employer’s Tax Guide
- IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties
U.S. Labor Department, Foreign Labor Certification
Hiring Foreign Workers
Treaty Arrangements
U.S.-Jamaica Tax Treaty of 1980 (U.S. Internal Revenue Service)