Former President of the Bahamas Chamber of Commerce and Employers’ Confederation and former member of the board of directors of the National Insurance Board (NIB), Edison Sumner commented on the pending rise in National Insurance contributions on Monday.
Summer told reporters, “it’s my view that if we’re able to correct and improve in some of the operational efficiencies then we might find that there might not be a need to adjust the rate as high and for the extended period that is being suggested.”
He added, “but outside of the issue of just raising rates on the person’s who are diligently paying NIB, NIB needs to also pursue the agencies and the government for funds that are owed to it because the government is one of NIB’s largest debtors.”
As to how the increase will affect businesses, Sumner said, “any employer or business is going to want to find ways to offset that additional cost to them and one of the ways that you offset cost is increasing your price points and fees for service to your customers. And the other way is also to try and find ways to reduce your cost of operations. Unfortunately, in many instances, the first casualty as it relates to reducing cost of operations is human capital. We start just cutting people off or releasing people from their employment.”
Sumner said hopefully the increase will lead to the prolonged life of the social infrastructure fund and greater benefit to those who qualify to access benefits.
The National Insurance rate rise will come into effect the first Monday in July 2024.
