The government has announced an increase in the amount to be deducted from employees and employers for the National Insurance Scheme (NIS) as of April 1, 2019, with a further increase slated for April 1, 2020.
The announcement was made by Finance Minister, Dr. Nigel Clarke, in the House of Representatives yesterday.
This means the deduction will move from 5-per cent of employees’ salary to 6-percent in April 2020.
Dr. Clarke says the NIS currently runs the risk of being depleted by the year 2037.
He says in 2017 just under $15-billion was paid out from the scheme with only $13-billion generated by the fund.
Dr. Clarke says improvements in investment returns alone will be unable to sustain the NIS necessitating the increase.