How to Calculate PAYE and NIS in Jamaica: 2026 Guide
Employers and employees trying to figure out their exact net pay or statutory deductions in Jamaica.
Understanding your payslip in Jamaica requires knowing how statutory deductions like PAYE (Pay As You Earn) and NIS (National Insurance Scheme) are calculated.
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1. NIS (National Insurance Scheme)
The NIS is calculated at a rate of 6% of your gross salary, capped at a specific annual limit. This is split evenly: 3% paid by the employee and 3% paid by the employer.
2. Education Tax & NHT
- Ed Tax: Employees pay 2.25%, and employers pay 3.5%.
- NHT: Employees pay 2%, and employers pay 3%.
3. PAYE (Income Tax)
PAYE is calculated after NIS and approved pension contributions are deducted. As of recent thresholds, the first $1.5 million JMD of your income is tax-free. Income above this threshold is taxed at 25% (up to $6 million), and any amount above $6 million is taxed at 30%.
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