Last Updated: January 2026
PAYE (Pay As You Earn) is Jamaica’s system of deducting income tax and statutory contributions directly from an employee’s salary before payment. Employers are legally required to calculate and remit these deductions on behalf of employees.
| Deduction | Rate / Notes |
|---|---|
| Income Tax (PAYE) | 0% up to JMD 1,902,360, 25% above threshold up to 6,000,000, 30% above 6,000,000 |
| Education Tax | 2.25% of statutory income |
| NIS Contribution | 3% of gross income (capped annually) |
| NHT Contribution | 2% of gross salary |
If an employee earns JMD 250,000 monthly, annual salary is JMD 3,000,000. Income above the tax threshold is taxed at 25%, while NIS, NHT, and education tax are calculated separately.
Understanding PAYE helps employees verify deductions, plan budgets, and ensure compliance.
Use our Jamaica PAYE Calculator to estimate your take-home pay instantly.