Minister of State in the Office of the Prime Minister, the Hon. Myles Laroda addressed the rate increase at the National Insurance Board during his presentation on the 2023/24 budget in the House of Assembly. The government has announced that the increase will take effect in July 2024 but has not yet announced the amount of the rate hike.
The Minister of State gave an example of the impact on contributions should the rate climb by 1.5%. He said, “the first year paying the minimum weekly wage of $260 will increase the employers portion from $15.34 to $17.29. Employees contributions on the minimum weekly wage will increase from $10.14 to $12.09. For both the employer and the employee this represents a difference of $1.95 per week. For those salaries on the minimum wage of $1127.67 employers and employees will pay a difference of $8.45 per month.”
Laroda continued, “we have one year to prepare for the rate increase and legislation will be tabled in Parliament later this year to bring this into effect. Simultaneously we intend to table changes to the NIB Act and regulations to strengthen our enforcement and improve compliance.”