Up to J$200,000 tax free? How do I sign up?

So, Jamaica’s government has changed the law to allow employers to make a tax-free payment to employees affected by Hurricane Melissa.

Employers can give workers an honorarium of up to J$200,000.  That’s about US$1200.  The money can be a one-off payment, or paid in installments up to March 31, 2026.

The honourarium is intended to be a show of support rather than regular salary or wages. Unlike bonuses or incentives, it’s not tied to work performance, ongoing compensation, or duties. That’s why the Government can make it tax-free. 

Parliament approved changes to the Income Tax Act that makes disaster relief payments to employees non-taxable during any period in which a national disaster is formally declared.

By design, the honourarium should help to cover basic needs like housing, food or essential household expenses. 

But two important things to note here: ONE – it’s not mandatory.  Businesses don’t have to do this. And TWO – While J$200,000 is the max that can be given, employers can choose to give less.

So the rules are clear. The funds must be given strictly for personal recovery and household needs, not bonuses or incentive pay. And It only applies to cash payments from employers to employees.  So employers who did care packages can’t say well, I already gave my employees food, etc., that was worth 200k. The programme is specifically for cash.

And that’s the bottom line.