Gov’t Looking to Strengthen NIS Funding Status

The Government, through the Ministry of Labour and Social Security, is looking to strengthen the funding status of the National Insurance Scheme (NIS) funding status to ensure guaranteed provisions for future beneficiaries.

This according to Portfolio Minister, Hon. Pearnel Charles Jr., who says “we have to do the work now and prepare so that those that are coming will be able to benefit.”

He was addressing the recent NIS 58th anniversary thanksgiving service at Torrington Wesleyan Holiness Church in Westmoreland, to mark the commemoration on April 4.

Minister Charles also responded to concerns raised regarding the adequacy of NIS benefits.

“Some persons complain to me that the money from the NIS is sometimes small and, yes, I agree. In the whole scheme of things, there is merit to that. But we also need to be mindful that the level of benefits is directly influenced by the contribution rate and the contributions made during one’s work life,” he pointed out.

Mr. Charles reiterated that last year, the rates for all benefits provided were increased, with adjustments ranging between 22 and 76 per cent.

“As the financial viability of the NIS and the funding status continue to improve, you can expect that the level of benefits provided will also continue to increase,” he stated.

The NIS, which commenced on April 4, 1966, is a compulsory contributory funded social security scheme covering all employed persons in Jamaica.

It is administered under the National Insurance Act and offers some financial protection to workers and their families against loss of income arising from injury on the job, sickness, retirement and/or death of the breadwinner.

Mr. Charles pointed out that the NIS currently pays more than 142,000 pensions, adding that at the end of fiscal year 2023/24, more than $28 billion was expended to provide benefits for citizens.

He further advised that NIS contributions at the end of the last financial year totalled over $47 billion.

“When you compare the sum expended to provide the benefits against the contribution inflows, what you see is that there is a positive net balance of $18.99 billion,” Mr. Charles stated.