THE INCOME tax threshold is set to be increased some time this year to address an overlap with Government's $400 increase in the minimum wage.According to Information Minister Burchell Whiteman, an increase in the tax threshold will be brought into effect in the coming months. "There has been a marginal overlap which will be dealt with at some time," Minister Whiteman told journalists during yesterday's post-Cabinet press briefing at Jamaica House.
MINIMUM WAGE INCREASE
Last week, Horace Dalley, Minister of Labour and Social Security, announced that the minimum wage will be increased by 20 per cent from $2,000 per week to $2,400 per week. The increase will take effect on January 31.
But with that increase, the annual minimum wage will move to $124,800, which is $4,800 above the current income tax threshold. The poorest class of workers would therefore be subjected to the 25 per cent income tax.
But yesterday, the Information Minister noted that there will be a "grace period" allowing time to implement the necessary changes because, with a $400 per week (or approximately $1,600 per month) increase, minimum wage earners will not surpass the current tax threshold for several months.
