Grenada Cabinet on Monday approved contribution increases to the National Insurance Scheme from September.
The announcement was made during Tuesdays’ press briefing by Minister for Trade and Economics Oliver Joseph.
Minister Joseph says come September 1st, employee contribution will increase from 4 to 5 percent while employers would move up from 5 to 6 percent.
“The cabinet at its meeting on Monday, approved the recommendation of the Board of the National Insurance Scheme, to increase the contribution rate from 9 percent to 11 percent. This is to be shared equally between employees and employers. The employers will pay 1 percent additional and employees 1 percent,” the Economic Development Minister says.
A number of public consultations were held over the past few months, across all the parishes on the proposed increase.
The decision to raise the contribution rate at this point was stimulated by the last three actuarial reviews, towards the sustainability of the NIS.
It is expected to be done incrementally.
Increasing the retirement age was also part of the discussion; however the minister says further consultation must first take place.
“At the same time consideration is being given for increasing the age of retirement, however cabinet asked for more consultation with stakeholders on the effective date for the age. What has been finalized is an increase in contribution rate, which will move from 9 percent to 11 percent effective 1st of September 2019.”
Following Cabinet’s approval, the upper house must deliberate to actualize the increase.
The NIS came into existence by the NIS law 14 of 1983. Its purpose is to provide pension and other benefits and services to its contributors and their families.