Payslip deductions in Jamaica: PAYE, NIS, NHT, Education Tax and HEART
What PAYE, NIS, NHT, Education Tax and HEART mean on a Jamaican payslip, who pays each one, the current rates, and a worked example.
Last updated 4 min readBy ELITEPro team
Every Jamaican payslip carries the same five statutory deductions: PAYE, NIS, NHT, Education Tax and HEART. Some come out of the employee's pay, some are paid by the employer, and a few are shared. This guide explains what each one is, who pays it, the current rates, and how they fit together on a payslip.
Rates in this guide are as at November 2026. Rates and the income tax threshold change from time to time, usually with the Budget. EPSPayX is updated for you when they do.
The five deductions at a glance
| Deduction | Employee pays | Employer pays | Worked out on |
|---|---|---|---|
| PAYE (income tax) | 25% / 30% above the threshold | — | Statutory income |
| NIS | 3% | 3% | Gross pay, up to the yearly wage ceiling |
| NHT | 2% | 3% | Gross pay |
| Education Tax | 2.25% | 3.5% | Statutory income |
| HEART | — | 3% | Gross pay |
Statutory income is gross pay less the employee's NIS and any approved pension contribution. It is the figure PAYE and Education Tax are worked out on.
PAYE (income tax)
PAYE is the income tax taken from pay each pay day and sent to Tax Administration Jamaica (TAJ).
- The income tax threshold is the amount of income each year that is free of tax. For 2026 it is J$1,876,614 a year. It is spread across the year's pay periods, so a monthly-paid employee gets one-twelfth of it each month.
- 25% is charged on statutory income above the threshold, up to J$6,000,000 a year.
- 30% is charged on statutory income above J$6,000,000 a year.
Because PAYE builds up across the year, an employee who joins part-way through, or brings a P45 from a previous employer, needs the earlier pay and tax taken into account so they are not over- or under-taxed.
NIS (National Insurance Scheme)
NIS funds pensions and other benefits from the National Insurance Scheme.
- The employee pays 3% and the employer pays 3% of gross pay.
- Contributions stop at a wage ceiling of J$5,000,000 a year — about J$416,667 a month or J$96,154 a week. At the ceiling, the most an employee pays is about J$12,500 a month.
NHT (National Housing Trust)
NHT contributions help Jamaicans buy and build homes, and employees can later get a refund of contributions they don't use.
- The employee pays 2% and the employer pays 3% of gross pay.
Education Tax
Education Tax funds education in Jamaica.
- The employee pays 2.25% and the employer pays 3.5%.
- It is worked out on statutory income (gross pay less NIS and approved pension), not on gross pay.
HEART
The HEART/NSTA Trust funds training across Jamaica.
- Only the employer pays: 3% of gross pay. Nothing comes out of the employee's pay.
How they appear on a payslip
On the employee's side of the payslip you will see PAYE, NIS, NHT and Education Tax taken from gross pay to arrive at net pay. The employer's shares of NIS, NHT and Education Tax, and HEART, are not taken from the employee — but the employer still pays them to TAJ with the monthly S01 return.
A simple monthly example, for an employee earning J$250,000 gross with no pension:
- NIS: 3% × 250,000 = J$7,500
- Statutory income: 250,000 − 7,500 = J$242,500
- PAYE: the monthly threshold is 1,876,614 ÷ 12 = J$156,384.50. Tax is 25% × (242,500 − 156,384.50) = J$21,528.88
- NHT: 2% × 250,000 = J$5,000
- Education Tax: 2.25% × 242,500 = J$5,456.25
Net pay = 250,000 − 7,500 − 21,528.88 − 5,000 − 5,456.25 = J$210,514.87.
On top of the employee's pay, the employer pays NIS J$7,500, NHT J$7,500, Education Tax J$8,487.50 and HEART J$7,500.
This example is for illustration. Real payslips can include allowances, benefits, pension and other items that change the figures.
Paying the deductions
Employers send all five deductions — employee and employer shares — to TAJ every month with the S01 return, and file the S02 annual return after the year ends. Our guide to filing your S01 and S02 covers this, and the payroll year-end checklist covers what to check before you file the S02.
Let EPSPayX do the maths
EPSPayX payroll software works out PAYE, NIS, NHT, Education Tax and HEART for every employee, every pay period, at the current rates — including the threshold, the NIS wage ceiling and P45 carry-overs. When the rates change, we update the system for you.