JIS News

The Government is ironing out the technical challenges it faces in seeking to amalgamate the statutory deductions of Pay as You Earn (PAYE) workers.
Finance Minister, Hon. Audley Shaw, gave this assurance as he addressed the Financial Services Commission’s Pensions Expo at the Jamaica Pegasus Hotel in Kingston today (Nov. 3).
Mr. Shaw said that the merging of the statutory deductions is integral to the reform of the National Insurance Scheme (NIS). He noted that the most challenging issue in the reform process is determining whether to remove the $500,000 wage cap on NIS contributions and instead, base contribution on how much an individual earns.
Meanwhile, he told the large gathering that the Government has carried out preliminary work to reform the public sector pension system.
“That is an area that we are going to have to grapple with over the next few years…it is not as simple as a matter as some might think. If we don’t confront it, then in another 10 or 20 years, we will not be able to afford a Government pension scheme. We can definitely send the signal to the sector that the days of non-contributory pension schemes are going to have to come to a close,” Mr. Shaw stated.
On the matter of savings, the Minister said that as the population ages, the question of social security becomes increasingly important, as bankers have noted that there is a low savings rate in the country.
He urged Jamaicans to set aside funds to allow them to care for themselves after retirement. “When we set aside something for our pension, that is part of the savings rate of the country, so we can kill two birds with one stone,” he also noted.

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