A call was made by Senator the Hon. Dr. Esther Byer-Suckoo to persons owing National Insurance contributions to make the payments.
“Those who owe National Insurance and are in arrears need to come and address those arrears,” she stressed during a press conference to release the findings of the 15th Actuarial Review of the National Insurance, Unemployment and Severance Funds.
Looking at ways to assist, the Minister of Labour, Social Security and Human Resource Development revealed that another interest waiver programme will soon be implemented.
She said that the previous programme, initiated from October 1, 2016 to March 1, 2017, was a success. The National Insurance Scheme (NIS) collected approximately $11.9 million in outstanding contributions from approximately 145 employers and waived $7.8 million in interest.
“A recommendation was made to the Board to do another waiver and I do also have the approval of Cabinet and it will go to Parliament after recess… We will enter another interest waiver programme from October 2017 to January 2018. Therefore, we are encouraging persons who are in arrears to take advantage of that programme,” she stressed.
It is estimated that only between 20 and 25 per cent of self-employed persons are paying their NIS contributions.
In addition to the interest waiver programme, the Minister revealed that National Insurance will be exploring online payment of contributions, arrangements and packages (paying for only what is needed) as well as flexibility in payment.
“National Insurance is looking at other ways that they can encourage persons to be able to make these payments… Not only because it helps the National Insurance, but because we know that this will benefit them in the long run, especially as non-contributory pensions are being phased out.”
Mindful that the public sector owes just as much money as the private sector, Dr. Byer-Suckoo disclosed that the Government of Barbados is in discussion with National Insurance.
“…The Minister of Finance did indeed indicate that because there is a high level of outstanding arrears from the State-owned enterprises, that the Ministry of Finance will seek to pay that directly to National Insurance, rather than send it to the corporations and then have it come back to National Insurance.
“As the Government sees its own cash flow improving through, for example, from the tax recently articulated on foreign exchange and the National Social Responsibility Level (NSRL) – as we see cash flow increasing from that, then the Minister of Finance has indicated that it would put them in a better position to be able to pay off its arrears,” she said. (TL)