NIS, NHT, Education Tax and PAYE rates for the current tax year, with worked examples for a typical Jamaican SME payroll.
Every Jamaican employer is responsible for deducting and remitting four separate statutory obligations on behalf of each employee. Missing a remittance, using the wrong rate, or applying the wrong threshold creates employer liability — not just employee liability.
National Insurance Scheme (NIS)
- Employee contribution: 3% of insurable wage, capped at JMD 5,000,000 per year
- Employer contribution: 3% (matching)
- Insurable wage ceiling: JMD 5,000,000 per annum (effective April 2026)
- Remittance: by the 14th of the following month
National Housing Trust (NHT)
- Employee contribution: 2% of gross emoluments (no ceiling)
- Employer contribution: 3% of gross emoluments
- Remittance: by the 14th of the following month
Education Tax
- Employee: 2.25% of statutory income
- Employer: 3.5% of statutory income
- No ceiling — applies to the full gross
PAYE (Pay As You Earn)
Income tax is withheld at source using the individual's annual income tax threshold:
- Annual threshold (2026/27): JMD 1,500,096
- Rate on income above threshold: 25% (up to JMD 6,000,000)
- Rate on income above JMD 6,000,000: 30%
Monthly PAYE is calculated by projecting the employee's annual income, applying the threshold and rates, then dividing by 12.
Worked Example — Monthly Payroll, One Employee
Employee gross salary: JMD 150,000/month
| Deduction | Rate | Amount |
|---|---|---|
| NIS (employee) | 3% × JMD 150,000 | JMD 4,500 |
| NHT (employee) | 2% × JMD 150,000 | JMD 3,000 |
| Education Tax (employee) | 2.25% × JMD 150,000 | JMD 3,375 |
| PAYE | (JMD 1,800,000 − JMD 1,500,096) × 25% ÷ 12 | JMD 6,248 |
| Net pay | JMD 132,877 |
Employer cost beyond gross: NIS 3% (JMD 4,500) + NHT 3% (JMD 4,500) + Education Tax 3.5% (JMD 5,250) = JMD 14,250 above gross salary.
Remittance Deadlines
All four deductions are remitted to the relevant authority by the 14th of the following month. TAJ administers PAYE and Education Tax; NIS has its own portal; NHT has its own system. Late remittance attracts a penalty of 50% of the amount due plus interest.