Increase in NIS contributions for some tomorrow

Come tomorrow, persons earning an annual income between $1 million and $1.5 million will pay more to the National Insurance Scheme.

This is as a result of an increase in the wage ceiling which will become effective tomorrow. The ceiling is set to move up by $500,000 to $1.5 million.

The increase will not affect persons earning above $1.5 million. Their rate of contribution will remain the same at 2.5 per cent, which will be matched by a similar amount by the employer.

Benefits from the NIS are also to increase by close to 17 per cent this week. This will become effective Thursday, January 10.

This means pensioners who receive their spouse's allowance may access a maximum of $5,100 per week.

Labour and Social Security minister, Derrick Kellier, had announced that Cabinet had approved an increase in the wage ceiling during the Sectoral Debate in July.