Setting up and managing payroll in Jamaica
When expanding into Jamaica, an important early step is likely to be hiring locally and establishing a payroll. However, these processes can be complex for foreign organizations to navigate. Cultural differences complex administrative procedures, and unique sets of regulations can all add to the confusion.
At Horizons, our experts offer Jamaica payroll setup and management outsourcing, enabling your organization to start hiring and expand more quickly and efficiently, whether or not you already have an established entity in the country.
Why choose the Horizons payroll solution?
If you have an entity
Have you already set up a legal entity within Jamaica? We can take all the complex payroll administration off your hands, helping you employ locally in accordance with local employment laws, managing HR, contracts, and any associated administration.
This service is well-suited to larger organizations and those who have already registered a presence in Jamaica that could benefit from outsourced Jamaica payroll and consultancy services.
If you don’t have an entity
If you don’t have a registered entity in Jamaica, you can use our full payroll outsourcing service. Our Jamaican subsidiary will act as employer of record for your employees, and our team will handle the HR, administration, and complex legal compliance work.
Choose this service for a low-risk, flexible, and scalable solution for your Jamaican payroll setup and management, with all the benefits of hiring locally and none of the usual complications.
Jamaica payroll guide
What are the withholdings and tax regulations in Jamaica?
Both employers and employees in Jamaica are required to pay a portion of salary toward social security at a rate of 2.5% each. Additionally, employers must pay at least 5% into a pension fund for each employee.
Income tax in Jamaica is 25% for most employees.
Employee entitlements and terminations in Jamaica
Employees in Jamaica are generally entitled to between two and 12 weeks of notice prior to termination. The precise length of mandatory notice depends on the employee’s length of service with the employer.
In cases where severance is due, payments are usually capped at 22 weeks of salary.
How to establish a Jamaica payroll
Setting up payroll in Jamaica is a complex process, and you will need to deal with cultural and procedural differences if you want to set it up yourself. You will need to first register an entity in Jamaica, then register with the appropriate tax authorities, and so on.
Horizons offers comprehensive payroll setup and management services, helping you bypass the complexities and get up and running in the country as quickly as possible. We can also offer our Jamaica subsidiary to act as employer of record, so you can benefit from our services even if you don’t have an entity in the country.
Manage payroll in Jamaica
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.