Expand your business into Jamaica, with or without a Jamaican entity
The island nation of Jamaica has made great strides in addressing the socio-economic issues that have previously plagued it. Today, Jamaica has a growing economy with excellent potential, and many businesses are looking to invest and grow their operations there.
However, expanding your organization to Jamaica can come with unforeseen delays. The country has a distinct set of national business and employment laws that can make the process difficult to navigate. In many cases, establishing a presence and expanding into Jamaica can take weeks or even months to complete.
At New Horizons, we help businesses from all industries to expand abroad, including into Jamaica. Our professional employer organization (PEO), employer of record, and payroll services can provide your organization with everything you need to kickstart your Jamaican expansion in a matter of days, not months, even if you don’t have an established entity in the country.
As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Jamaican workforce, along with any ongoing HR and compliance admin.
Our tailored expansion solutions can save you thousands in expansion costs and provide you with a faster route into Jamaica.
How New Horizons outsourcing can help you expand into Jamaica
New Horizons enables your business to expand its operations into Jamaica – without setting up a legal subsidiary.
Hiring in Jamaica - Employment Law Overview
Jamaica employment contracts
In Jamaica, contracts of employment can be either verbal or written. However, we recommend that you always write up a formal contract whenever hiring in Jamaica. Contracts should be written in English, reference the local currency of the Jamaican dollar, and include all relevant details such as compensation, benefits, working hours, and so on.
Working hours in Jamaica
The standard working week for employees in Jamaica is 40 hours. Any hours worked beyond 40 hours must be paid at overtime rates.
National holidays in Jamaica
There are several annual public holidays in Jamaica. Many employees receive the following days off work:
- New Year’s Day
- National Heroes Day
- Ash Wednesday
- Good Friday
- Easter Monday
- Christmas Day
- Boxing Day
- Labor Day
- Emancipation Day
- Independence Day
Vacation in Jamaica
Employees in Jamaica are generally entitled to at least ten days of paid leave annually. After working for more than 10 years with an employer, this entitlement rises to 15 days.
Sick leave in Jamaica
After 110 days of service with an employer, employees in Jamaica are entitled to accrue one day of paid sick leave for every 22 days of work completed. After one year of service, employees are entitled to two weeks of paid sick leave.
Maternity and paternity leave in Jamaica
After one year of service with an employer, female employees in Jamaica are entitled to 12 weeks of maternity leave, with the first eight weeks paid.
Employee severance 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.
Tax laws 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.
Corporate tax in Jamaica differs depending on the type of company. For most companies regulated by the Bank of Jamaica, the tax rate is 33 and one-third percent. For unregulated businesses, it is 25%. Other rates apply to other types of businesses, such as building societies.
Health coverage in Jamaica
Jamaica has a public healthcare system, so employers are not expected to provide private medical insurance. However, some may choose to offer it as a benefit.
Jamaica compensations & benefits
Compensation laws in Jamaica
For most workers in Jamaica, the mandatory minimum wage is 7,000 JMD per week.
Benefit management in Jamaica
Managing your benefits packages as an employer in Jamaica may include setting up things like private health insurance, supplementary parental leave payments, a company car, and so on.
Setting up such a benefits system for your Jamaican employees can be difficult if you are unfamiliar with the country and its unique labor laws. If you want to independently set up your benefits system, you can expect it to take weeks or even months, potentially presenting significant delays to your Jamaican expansion.
New Horizons can simplify your Jamaica benefits management, with our Jamaica experts setting up and managing everything for you and helping you focus on a successful expansion operation.
Why choose New Horizons' services for your expansion into Jamaica?
New Horizons’ Jamaica-specific PEO, employer of record, and payroll services provide your business with everything needed to start trading in Jamaica quickly and compliantly. Our Jamaica experts will help you set up your operation and begin trading in Jamaica in as little as 48 hours, and could save you as much as 82% in expansion-related costs, even if you haven’t already registered an entity in the country.
We will handle your expenses, payroll, and legal compliance in Jamaica, as well as all HR administration. And as the only global PEO with a dedicated recruitment team in-house, we can also source and hire your local employees, using our Jamaican subsidiary to act as employer of record so you don’t need to have a Jamaican entity.
Speak to our Jamaica payroll experts today to find out how our services can assist your expansion into Jamaica.