BROWN… the Jamaican employment cost falls below the global average

A new study done by international accounting firm UHY indicates that taxes on employment have started to fall globally, but that businesses are still paying out more than a fifth of employees’ salary in employment taxes.

The average extra cost to businesses in social security and other employment “taxes” has fallen by five per cent since 2012, but globally still accounts for 20 per cent of an employee’s annual salary, according to the new study by UHY.

UHY said in a related release that while the global decline in the amount that businesses have to pay in additional employment “taxes” — on top of employees’ wages — is encouraging, it still remains persistently high, with some countries now seeing double-digit percentage increases.

Locally, Dawkins Brown, managing partner of UHY Dawgen, notes that the Jamaican employment cost is 11.6 per cent and 10.6 per cent on a gross annual salary of US$15,000 and US$30,000 respectively — which falls below the global average of 20 per cent and improves Jamaica’s competitiveness when compared with other countries.

http://www.jamaicaobserver.com/business/Jamaican-employment-taxes-are-globally-competitive——-_53434