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LaRoda foresaw a contribution increase of up to 2% – Eye Witness News

The Bahamas, Nassau — The National Insurance Commission’s contributions could increase by up to 2 percent over the next year as the government seeks to address the fund’s long-standing deficit with payments that exceed its contributions over the past six years.

The Minister of Prime Minister’s Office Miles Laroda said yesterday: The Cabinet has not yet made a decision on a recommendation to increase the NIB’s contribution, but believes that the increase will be implemented.

“We need to make difficult decisions and we are ready to make those decisions,” said the Minister.

“We’re talking about tens of thousands of NIB individuals who have contributed for decades. It’s a shame for those who wouldn’t have benefited in their time. Therefore, we are ready to address this concern and are willing to address it. “

Laroda points out that the issue is in front of the Cabinet, saying: Re-into that unsustainable position. “

Asked for a recommended rate hike, the Minister said: So it’s not just one. A significant increase can be expected. It hasn’t been decided by the Cabinet yet, but it’s not surprising that there will be an increase. “

According to LaRoda, NIB has been in the red for the past six years.

The final rate hike came into effect in 2010, from 8.8% to 9.8%.

The contribution rate is 3.9% for employees and 5.9% for employees.

In January 2021, then Minister of National Insurance and Civil Affairs Brensil Rolle said the NIB may need to increase its contributions as a result of the payments required for the Hurricane Dorian and Coronavirus pandemic. ..

He said there was a recommendation in 2015 to increase donations to maintain the fund.

The pandemic has stagnated the world economy, especially most of the travel and tourism industries in 2020 and 2021.

The closure of non-essential businesses and businesses that rely on tourism, coupled with the blockade associated with the state of emergency, has boosted the unemployment rate to 40 percent in the Bahamas.

Almost $ 100 million was paid as an unemployment allowance through the NIB.

An additional $ 92 million was paid through a government-funded unemployment support program.

https://ewnews.com/nib-increases-coming-laroda-foreshadows-1-5-2-percent-contribution-hike?utm_source=rss&utm_medium=rss&utm_campaign=nib-increases-coming-laroda-foreshadows-1-5-2-percent-contribution-hike LaRoda foresaw a contribution increase of up to 2% – Eye Witness News

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