Jamaican payslips carry six statutory deductions, each with its own rate and ceiling. That layering is why the gap between gross and net can look larger than expected.
What comes off
- PAYE. Income tax, 25 % up to a threshold and 30 % above it.
- NIS. National Insurance Scheme, around 3 % from you and 3 % from your employer.
- NHT. National Housing Trust, roughly 2 % from you and 3 % from your employer.
- Education Tax. Around 2.25 % from you and 3.5 % from your employer.
- HEART/NTA. About 3 %, paid by the employer only.
- Plus any employee-specific obligations such as pension contributions.
The tax-free threshold
Income tax only applies above an annual threshold, which has been rising in phases. Below that figure, no PAYE is due.
Pensioners aged 55 and over receive an additional pension exemption on top.
The NIS ceiling
NIS contributions are calculated on gross salary up to an annual cap. Above that ceiling, the contribution stops increasing.
That is why your NIS deduction may not rise in step with a pay increase.
Education Tax is different
It is calculated on statutory income — gross pay minus NIS and approved pension contributions — not on raw gross. The order of the calculation matters.
What NHT gives back
Unlike a tax, NHT contributions are refundable. After a set number of years your contributions can be claimed back, and they also give you access to NHT mortgage benefits.
Many workers never claim refunds they are entitled to simply because they do not know the money is theirs.
Check your payslip
You should be able to identify each of those lines. If a deduction appears that you cannot account for, ask. And keep your payslips: they are the record that proves what was deducted.