Effective Monday the National Insurance wage ceiling will increase by J$500,000 to J$1.5 million. The wage ceiling is the basis on which an individual's contribution to the National Insurance Scheme (NIS) is calculated. The plan was announced last year by Derrick Kellier, Minister of Labour and Social Security during his 2012/13 Sectoral Debate presentation. He gave a reminder recently to the first group of 172 workers who were leaving the island for Canada on the Overseas Employment Programme. The Minister stated that workers earning below J$1 million per year will not be affected by this increase. He noted, however, that employees earning J$1 million to J$1.5 million will see an increase in the amount they contribute. He also said that those earning above J$1.5 million, will not experience any further deductions beyond that amount. The rate of contribution remains the same at 2.5 per cent of earnings by the worker, matched by a similar amount by the employer. Mr. Kellier explained that the National Insurance is not a tax, but a contribution towards retirement benefits. Mr. Kellier encouraged all workers in Jamaica to ensure that their contributions to the Ministry are in good order. The Labour Minister also urged those in the Overseas Employment Programme to make NIS contributions during those periods when they are in Jamaica so their contributions record can be up-to-date |
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