Jamaica Payroll Resources & Guides

What statutory deductions does every Jamaican employer need to know?

Every employer in Jamaica is legally required to deduct and remit four statutory contributions on behalf of employees: PAYE (Pay As You Earn income tax), NIS (National Insurance Scheme), NHT (National Housing Trust), and Education Tax. Together, these make up the core of Jamaican payroll compliance, and failure to correctly calculate or remit any of them exposes employers to penalties, interest charges, and enforcement action from Tax Administration Jamaica (TAJ) and the relevant statutory bodies.

PAYE is the income tax employers withhold from employee wages and remit to TAJ monthly. The current income tax threshold is JMD $1,902,360 per year. Employees earning above this threshold pay 25% on income up to JMD $6,000,000 and 30% on the excess. Employers must file monthly PAYE returns and make payment by the 14th of the following month.

NIS contributions are 3% from the employee and 3% from the employer, capped at the annual NIS ceiling. NIS provides employees with access to sick benefit, maternity benefit, retirement pension, and invalidity benefit. Contributions are remitted monthly to the National Insurance Fund.

NHT is 2% from the employee and 3% from the employer, with no earnings ceiling. Contributions fund the National Housing Trust's mortgage and housing benefit programs. Employees who have made at least 52 weekly contributions become eligible to apply for NHT benefits.

Education Tax is 2.25% from the employee and 3.5% from the employer, with no ceiling, remitted to TAJ alongside PAYE each month.

Where to find official Jamaica payroll regulations

The primary regulatory bodies governing payroll in Jamaica are:

• Tax Administration Jamaica (TAJ) — responsible for PAYE, Education Tax collection, and employer compliance. TAJ publishes official guidance, employer registration forms, and remittance schedules at taj.gov.jm.
• National Insurance Scheme (NIS) — administered by the Ministry of Labour and Social Security. NIS rates, employer obligations, and benefit information are published at mlss.gov.jm.
• National Housing Trust (NHT) — NHT contribution rates, employer remittance requirements, and employee benefit eligibility are available at nht.gov.jm.
• Ministry of Finance and the Public Service — announces budget changes to income tax thresholds and statutory rates each year. Employers should monitor mof.gov.jm for annual updates.

Payroll Jamaica monitors all regulatory announcements and updates the software's tax tables automatically when changes are announced. You don't need to manually update any rates — your next payroll run will automatically use the current figures.

More resources and tools

Explore Payroll Jamaica's full set of tools and services for Jamaican employers:

• Platform features — see everything Payroll Jamaica automates, from PAYE calculations to bank payment files.
• Managed payroll services — outsource your payroll entirely to our team of Jamaica payroll specialists.
• Free payroll calculator — instantly calculate PAYE, NIS, NHT, and Education Tax for any employee.
• Why spreadsheets don't work for Jamaican payroll — see why Jamaican businesses switch from Excel to dedicated payroll software.
• Payroll blog and guides — in-depth articles on all aspects of Jamaica payroll compliance.
• Payroll glossary — 25+ Jamaica payroll terms defined (PAYE, NIS, NHT, SO1, P24, and more).
• Jamaica minimum wage 2026 — current minimum wage rates, statutory deductions impact, and employer cost breakdown.
• PayrollJamaica vs QuickBooks — see why Jamaica businesses choose local payroll software over QuickBooks.