Tourism workers pension scheme now in effect

Over 350,000 tourism workers in Jamaica are set to enjoy the benefits of a new pension scheme that was developed for the industry by the government.

The scheme, which has been described as groundbreaking, was officially introduced on January 1, 2022 which then allowed for the workers to register. Going forward, the scheme will be funded through mandatory contributions by workers and employers. Initially, for 2022, the contribution will be three per cent of gross salary to be matched by the employer, and five per cent thereafter, with the Government providing $1 billion to seed the fund.

According to release from the Ministry of Tourism, this is a game changer for the tourism workers in Jamaica. “The Tourism Workers’ Pension Scheme is the biggest human capital development game-changer in the history of Jamaica’s tourism sector. It will allow thousands of tourism workers to look forward to a financially secure retirement.

It covers all workers ages 18-59 years in the tourism sector, whether permanent, contract or self-employed and benefits will be payable at age 65 years or older. The scheme, importantly, will allow for the workers to move within the industry and retain their benefits without penalties or the loss of their contributions.