Understanding Your Jamaican Payslip
Every line on your payslip explained: NIS, NHT, Education Tax, PAYE, statutory income, and chargeable income in plain English.
By Michael T for OurJa
Your payslip contains several deductions that most employees have never had properly explained. Here is what every line means, how each is calculated, and why it matters.
Gross Salary
This is your full salary before any deductions. It's what's written in your employment contract. All statutory deductions are calculated from this starting point.
NIS: National Insurance Scheme (3%)
You contribute 3% of your gross salary to NIS, up to a maximum annual gross of J$5,000,000. Your employer matches this with another 3%. NIS funds social security benefits: old-age pension, invalidity benefit, maternity allowance, employment injury benefits, and a funeral grant.
Tip: NIS is the only statutory deduction that reduces your PAYE taxable income. The amount you pay in NIS is subtracted before PAYE is calculated.
NHT: National Housing Trust (2%)
You contribute 2% of gross salary to NHT. Your employer contributes an additional 3%. Unlike NIS, NHT is refundable. Contributions from 7 years ago can be claimed back. NHT also provides mortgage financing at favourable rates to contributors.
Education Tax (2.25%)
Education Tax is calculated at 2.25%, but not on your gross salary. It is calculated on your Statutory Income, which is gross salary minus your NIS contribution and any approved pension contribution. This distinction trips up many payroll systems.
What is Statutory Income?
Statutory Income = Gross Salary - NIS - Pension Contribution. This is the base used to calculate Education Tax. The employer's Education Tax rate is 3.5% of the same Statutory Income.
PAYE: Pay As You Earn Income Tax
PAYE is the income tax deducted from your pay each month. In 2026, the first J$1,902,360 of annual income (J$158,530/month) is tax-free. Above the threshold, you pay 25% up to J$6M and 30% on the portion above J$6M.
PAYE is calculated on: Chargeable Income = Gross - NIS - Pension - Tax Threshold - Other Exemptions.
Sample Payslip Calculation
Employee: Monthly gross J$200,000. Resident. No pension. Tax year April-December 2026.
| Item | Calculation | Amount |
|---|---|---|
| Gross Salary | N/A | J$200,000 |
| NIS (3%) | 3% x J$200,000 | -J$6,000 |
| Statutory Income | J$200,000 - J$6,000 | J$194,000 |
| Education Tax (2.25%) | 2.25% x J$194,000 | -J$4,365 |
| NHT (2%) | 2% x J$200,000 | -J$4,000 |
| Chargeable Income | J$200,000 - J$6,000 - J$158,530 | J$35,470/mo |
| PAYE (25%) | 25% x J$35,470 | -J$8,868 |
| NET PAY | J$176,767 |
Tip: Use the OurJa Salary Calculator to get your exact figures instantly, including a full payslip breakdown.
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