Cabinet Approves Unemployment Insurance Benefit for NIS Contributors

Cabinet has approved the introduction of the unemployment insurance benefit, which will be added to the suite of provisions under the National Insurance Scheme (NIS).

The new benefit will serve as a guaranteed safety net for all employees who contribute to the NIS, except for self-employed persons.

Additionally, work is under way to establish the requisite legal and institutional frameworks to implement this important national support system.

“One of the key lessons from the COVID-19 pandemic is the urgent need for a system that supports workers who lose their jobs, helping them to remain financially stable while seeking re-employment,” Minister of Labour and Social Security, Hon. Pearnel Charles Jr., said during his 2025/26 Sectoral Debate presentation in the House of Representatives on Tuesday (May 13).

Meanwhile, the Government has taken a decisive step to strengthen the nation’s social security framework by implementing the Social Protection for Increased Resilience and Opportunity (SPIRO), a US$20-million initiative supported by the World Bank.

Mr. Charles Jr. noted that SPIRO, which was launched last year, represents a transformative shift in social governance, with three strategic pillars – the creation of a unified Social Protection Information System (SPIS), supporting the introduction of unemployment insurance, and modernising of the Labour Market Information System (LMIS).

“The project is already generating impact through comprehensive assessments led by expert consultants, aimed at overhauling labour market services,” he stated.

The Minister further indicated that there will be upgrades to the Electronic Labour Exchange (ELE) and LMIS, which will enhance the digital infrastructure for employment services.