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What is NHT?
NHT stands for National Housing Trust, which is a government organization established back in the 70s, allegedly with the aim of providing affordable housing to NHT contributors. Who are these contributors? You! As usual, if the government is going to provide assistance to the public, they need a source of funding. Of course, you are the lucky winner to assist the government with its cause…as long as you are legally working in Jamaica (whether you are staff or not).
The NHT contributors usually fall into one of the following categories:
- employers,
- employees,
- self-employed persons,
- voluntary contributors.
What is the NHT Contribution in Jamaica?
The NHT Contribution is currently at:
- 2% for employees. 2% of your gross salary (not including non-taxable earnings) is paid on your behalf, by your employer.
- 5% in total for employers. 3% of each employee’s gross salary plus the 2% mentioned above.
- Self-Employed Persons – this depends on the category you fall in. Categories 1 – 5 pay 3% of their income, while Categories 6 – 7 pay 2% of their income. The categories are as follows:
N.B. Some people call it “NHT Tax” but technically it is not a tax, it is instead a contribution…yes, I know…dem a tek di money from wi, so wi feel “taxed”, we don’t feel like wi “contributing”).
Benefits of the NHT
The whole point of the NHT is to ensure the availability of affordable housing (what’s that?) to its contributors. The NHT is supposed to provide:
- Actual houses, usually constructed in schemes and sold at affordable (here’s that mysterious word again) prices.
- Loans for home repairs (at relatively low interest rates).
- Loans for you to construct your own home (at relatively low interest rates).
- Loans for you to buy land (at relatively low interest rates).
The idea is that home ownership and the ability to maintain that home are supposed to be achievable (this is most certainly up for debate).
Another benefit is the fact that contributors like you can get a NHT Refund. Once you’ve started paying NHT contributions and you have done so consecutively for 7 years, you should be able to apply for a refund in the 8th year. Read more here. This refund, which you get with interest, raises the question of whether or not your NHT contribution is actually a tax…what do you think?
Jamaican Workers & NHT Contributions
Why is it important to pay NHT taxes? Taxes paid to National Housing Trust (NHT) goes into a pool which contributors can benefit from as highlighted above.
Please ensure that you check with the National Housing Trust of Jamaica, at least once a year, to confirm if your NHT contributions are actually being paid over to them. Feel free to use our salary calculator to get an idea of what your contributions should look like. If your employer has not been paying over your contributions, you have the right to take legal action against them.
It is very important and it is your responsibility that you check your income to ensure that the correct taxes are being withdrawn, so that you do not end up being disadvantaged later on. Contact your Payroll department to request clarification where necessary. Remember, this is for your benefit, not theirs.
Other resources for you to check out:
If you have any queries, concerns, suggestions…or if there is a particular work-related issue you want us to address…please leave a comment below and we’ll do our best to respond in a timely manner.
Take care…and know yu rights...nuh mek dem tek yu fi eeidiot!
