How to Calculate Redundancy in Jamaica

 

To qualify for redundancy in Jamaica an employee must have been in continuous employment at the time of dismissal, for the period of 104 weeks with his or her employer. There are 2 types of redundancy calculations: redundancy for 10 years or under and redundancy for over 10 years.

Redundancy 10 years or under formula

First, you need to find out the weekly salary

Second, you need to find out the total number of weeks due by multiplying the number of qualified years of service by 2 weeks.

Finally, to get the answer for the redundancy under 10 years, multiply the total number of weeks due by the weekly salary.

Example:

Marcus has been employed at the Damalio Sugar Factory for 9 years as a janitor. He earns an annual salary of $480,000. His position is about to be made redundant. How much pay is he entitled to receive for his redundancy package? (Not including any outstanding vacation or notice payment)

$480,000 / 52 weeks = $9230.77 weekly pay

9 years x 2 weeks = 18 total number of weeks due

$9230.77 x 18 weeks due = $166,153.86 in redundancy payments

Redundancy for over 10 years formula

Calculate the weekly salary

Then work out the number of weeks due for the first 10 years by multiplying 10 years by 2 weeks.

Next, Calculate the total number of weeks due for the period over 10 years by multiplying the years over 10 by 3 weeks.

Compute the total weeks due by adding the totals for both separate weeks due for the 10-year period and the over 10-year period.

Finally, multiply the total weeks due by the weekly salary to get the redundancy under 10 years.

Example:

Maria has been employed at the Damalio Sugar Factory for 14 years as a supervisor. She earns an annual salary of $1,200,000. Her position is about to be made redundant. How much pay is she entitled to receive for her redundancy package? (Not including any outstanding vacation or notice payment)

$1,200,000 / 52 weeks= $23,076.92 for weekly salary

First 10 years x 2 weeks = 20 weeks due for the first 10 years

4 years x 3 weeks = 12 weeks due for the period over 10 years

20 weeks due + 12 weeks due = 32 total weeks due

32 total weeks due x $23,076.92 = $738,461.44 in redundancy payments.