Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
Expanding your business operations to Jamaica can be lucrative, but international expansion has its fair share of challenges. An Employer of Record in Jamaica can help you streamline market entry. Employer of Record (EOR) services act as a bridge between your company and the Jamaican market, offering a simple solution to the problems of global expansion.
A Jamaican Employer of Record allows international companies to hire employees in Jamaica without establishing a legal entity. Such services cover all your HR-related tasks, including payroll management, tax compliance, employment contracts, hiring and firing procedures, expenses claim declaration, social security management, employee benefits and insurance, regulatory compliance, and employment law adherence.
EORs handle your legal and administrative burdens so you can focus on the primary assignment: expansion.
Outsourcing HR responsibilities to an EOR eliminates the need for extensive administrative work and significantly reduces setup costs and timeframes.
Even well-prepared global expansion strategies can fail because of delays or administrative hurdles. With an EOR, you can focus on core business activities, drive growth and maximize opportunities in the Jamaican market while your EOR partner handles HR matters.
An EOR partner bears your employment-related risk and mitigates these risks by complying with local regulations, documenting employment contracts, handling employee claims, and eliminating the risk of setting up your entity.
An EOR like INS Global has extensive experience and a global reach in over 100 countries. So we can efficiently manage all your global expansion efforts via a single point of contact.
Incorporating a company in Jamaica involves time-consuming legal procedures, substantial costs, and ongoing compliance burdens.
In contrast, partnering with an EOR is a quick and cost-effective solution, enabling you to enter the Jamaican market quickly and effectively.
EOR services are great for…
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
The process for engaging an EOR in Jamaica is straightforward:
Both a PEO in Jamaica and local EOR services can help with international expansion. While both are forms of employment outsourcing, their legal structure and level of involvement differ according to your needs.
A Professional Employer Organization (PEO) shares employer responsibilities with your company, while an Employer of Record (EOR) takes full legal responsibility for employment matters.
While PEO services keep liability with you, an EOR like INS Global becomes the legal employer of your Jamaican staff. Hence, an EOR simplifies HR management, mitigates employment-related risk, and offers flexible and quick market entry.
Labor contracts in Jamaica are governed by the Labour Relations and Industrial Disputes Act (LRIDA). While there is no legal requirement for a written agreement, best practice advises a written contract that clearly outlines the terms and conditions of employment.
A Jamaican employment contract should contain these essential details:
Common labor contract types include the following:
There is no legal mandate for a probationary period in Jamaica, but it is common for collective agreements to include a probation period of 3 to 6 months.
The ease of terminating a labor contract in Jamaica varies depending on various factors, such as the type of employment, length of service, and specific circumstances surrounding the termination.
Misconduct or breach of contract is a valid reason to terminate an employment contract. However, you’d require proper documentation and evidence to support the termination decision.
The notice period before termination or resignation is determined based on the length of employment as described below:
Alternatively, the employer may provide termination pay instead of notice, equivalent to the required notice period.
Additionally, while these are the minimum requirements mandated by law, employers may offer longer notice periods or higher termination pay at their discretion or based on the terms of the work agreement.
Jamaica’s standard full-time employment arrangement is 40 hours weekly and 8 hours daily. However, all 7 days of the week, including Sunday, are recognized as working days.
Jamaican employees are entitled to a rest break for lunch during a workday.
Overtime is work that surpasses 40 hours per week, work done on a day designated as a rest day or public holiday. Such labor is compensated at 150% of the regular salary. Furthermore, work done on Sundays and public holidays attracts a payment rate of 2 times the normal salary.
Employees in Jamaica are eligible for paid leave on the country’s 10 nationally recognized public holidays:
Employees in Jamaica are entitled to 2 weeks of paid leave annually. However, employees who have completed 10 or more years of continuous service are eligible for 3 weeks of paid leave.
Once employees in Jamaica have completed 110 days of service with an employer, they accrue 1 day of paid sick leave for every 22 days of work completed. After completing 1 year of service, employees are eligible for 2 weeks of paid sick leave.
Pregnant employees who have completed 1 year of service can take a 12-week maternity leave. During this period, they are entitled to receive maternity pay for 8 weeks, equivalent to their regular salary rate.
Employers are obligated to deduct and remit these social security contributions by the 14th day of the month following the month of deduction:
Contribution | Employer Rate (%) | Employee Rate (%) |
National Insurance Scheme (NIS) | 3% | 3% |
National Housing Trust (NHT) | 3% | 2% |
Education Tax | 3.5% | 2.25% |
Individuals are liable to income tax of 25% on their chargeable income that does not exceed 6 million Jamaican dollars (JMD) per annum. Chargeable income over JMD 6 million per annum is subject to income tax at 30%.
A resident corporation is taxed on its worldwide income. But non-resident companies are subject to tax on Jamaican-sourced income at these rates:
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No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
It takes less than a month to get started with an employee based in Jamaica using an existing Employer of Record. Incorporating a new subsidiary to hire in Jamaica can typically take 4-12 months before any operations begin.
The price of professional EOR services in Jamaica is a percentage of the worker’s monthly compensation. This price covers the fee for HR-related tasks that ensure your compliance with local employment laws.
Yes. An EOR in Jamaica is a safe, legitimate, and efficient way to handle employer responsibilities without establishing a corporate structure.
An EOR service agreement in Jamaica ensures your team members are paid on time and accurately each month. In addition, employees can access all Jamaican employee benefits and be completely protected by the law.
Independent contractors who interact with clients using an EOR in Jamaica will retain full control of their work and may be eligible for the same benefits as regular employees. Hence, partnering with an EOR is like working via an umbrella organization that seeks your interest.
Yes. Our team of recruitment consultants experts can find the best local talent in Jamaica for your needs.
Yes. An Employer of Record can tap into its online or offline pool of professional networks to help you find workers in various cities or regions within Jamaica.
An EOR handles headhunting, interviews, and candidate selection in specific Jamaican cities or regions, depending on your needs or preferences.
You can employ the number of employees you need to achieve your goals. Some PEO or EOR service providers have a minimum or maximum limit but INS Global has no number requirement when hiring.
We know the importance of flexibility when implementing a business strategy in Jamaica, so we allow you to scale up or down quickly at any time.
The option for employees to work in a shared workspace can be helpful. However, a PEO in Jamaica eliminates the need for a local business address.
Absolutely. We can manage the necessary visa and work permit processes for foreigners in Jamaica. Also, we can handle situations where the local employment laws, tax laws, or employee benefits differ for Jamaicans and foreigners.
EOR and PEO solutions help enterprises of all sizes, from SMEs to multinational corporations. These solutions ensure efficient and secure employment of foreign or local workers. Also, it can help scale employment demands to meet work operations.
Staffing firms and umbrella corporations are third-party options for hiring independent freelancers in Jamaica.
The hiring cost in Jamaica includes salary, recruiting service fees, signing bonuses, social security contributions, and worker benefits and allowances.
Employers in Jamaica manage payroll for all workers. They are also responsible for monthly withholding and remitting amounts corresponding to employees‘ income tax and social security contributions.
The minimum wage for Jamaica (in Jamaican dollars) from 01 June 2023 is as follows:
These are the most common visa types for employees in Jamaica. Generally, their length of validity corresponds to a fixed-employment contract length:
Employers in Jamaica are responsible for organizing and withholding employees‘ income tax payments and social security fund contributions monthly.
Employees in Jamaica are entitled to severance pay, public holidays, paid leaves (sick, annual, and parental leave), and health insurance.
Jamaica does not permit unilateral changes to an employee‘s contract. Instead, both parties must agree and sign modifications to an employee‘s working conditions.
In addition to public and private healthcare, the National Insurance Scheme (NIS) provides social security benefits, including disability benefits, maternity benefits, funeral grants, and employment injury benefits.
The notice period before termination is determined based on the length of employment. But employers may provide termination pay instead of notice, equivalent to the required notice period.
The Ministry of Labour and Social Security in Jamaica is responsible for formulating and implementing labor policies, ensuring compliance with labor laws, and promoting fair and equitable working conditions for Jamaican employees.
Employees in Jamaica are eligible for paid leave on the country‘s 10 nationally recognized public holidays.
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