1. WHO IS COVERED CONTD Persons temporarily employed outside of - - PDF document

SOCIAL PROTECTION AND FORMALIZATION for DIFFICULT TO COVER GROUPS

• 1. WHO IS COVERED
• All persons over 16 years of age and under

pensionable age who are employed under a contract of service.

• Anyone 16 years of age and under

pensionable age* (66 ½) whose employment is not under a contract of service.

• Contributions must be paid whether or not

the worker is Barbadian.

• * 2018 - 67

• 1. WHO IS COVERED CONT’D
• Persons temporarily employed outside of

Barbados who were recruited in Barbados for a labour programme sponsored by the Government are covered as self-employed.

• Taxi drivers who own their vehicles are

covered in the category of self-employed persons.

• Taxi drivers employed by transport

cooperatives are insured as employees.

• 1. COVERAGE CONT’D
• Insured population:

2016 107,652 2015 113,507 2014 116,458 These figures encompass government employees, those from the private sector and the self- employed.

• 1. COVERAGE CONT’D
• Estimated number of self-employed and

persons in the informal sector: 20,000* or 18.5% of the insured population.

• Number registered with the National

Insurance Office: 6,165 or 30%.

• Less that 20% of the self-employed submit

contribution payments.

• *figures from B’dos Statistical Service prior to

2010

• 1. COVERAGE CONT’D
• There has been a decline in the number of self-

employed persons submitting contributions.

• Payments over the last four years from the self-

employed:

2016 2,419 2015 2,925 2014 3,432 2013 3,651

• 1. COVERAGE CONT’D
• Beneficiaries are divided between persons

who are retired and those in the work force.

• No of persons receiving pensions – 44,264
• Population receiving benefits for short periods
• f time – 62,391
• 2. CONTRIBUTIONS RATES
• Insurable earnings –the upper limit of salaries

and wages on which contributions are paid.

• Insurable earnings for 2017:

Monthly - $4,650 Weekly - $1,073

• 2. CONTRIBUTION RATES CONT’D
• Minimum earnings for the payment of

contributions:

Weekly: $21.00 Monthly: $91.00

• 2. CONTRIBUTION RATES CONT’D

Self-employed - "S"

Self-employed % Total % National Insurance 13.50 13.5 Non-Contributory 2.00 2.00 Employment Injury Unemployment Severance Training Levy 0.50 0.50 Catastrophe Fund 0.10 0.10

Total 16.1% 16.1%

• 2. CONTRIBUTION RATES CONT’D

Government Temporary Employees - "T"

Employee % Employer % Total % National Insurance 6.75 6.75 13.50 Non-Contributory 2.00 2.00 4.00 Employment Injury 0.75 0.75 Unemployment 0.75 0.75 1.50 Severance Training Levy 0.50 0.50 Catastrophe Fund 0.10 0.10 Total 10.1% 10.25% 20.35%

• 2. CONTRIBUTION RATES CONT’D

Government Permanent Employees - "P"

Employee % Employer % Total % National Insurance 6.20 6.20 12.40 Non-Contributory 2.00 2.00 4.00 Employment Injury 0.75 0.75 Unemployment Severance Training Levy 0.50 0.50 Catastrophe Fund 0.10 0.10 Total 8.8% 8.95% 17.75%

• 2. CONTRIBUTION RATES CONT’D

Private Sector Employees - "R"

Employee % Employer % Total % National Insurance 6.75 6.75 13.50 Non-Contributory 2.00 2.00 4.00 Employment Injury 0.75 0.75 Unemployment 0.75 0.75 1.50 Severance 0.50 0.50 Training Levy 0.50 0.50 1 Catastrophe Fund 0.10 0.10 Total 10.1% 11.25% 21.35%

Private Sector Employees - "R

• 3. ADMINISTRATIVE PROCEDURES

FOR AFFILATION

• Self-employed contribution payments entitle

them to receive the following benefits:

– Contributory pension or grant – Sickness benefit – Maternity benefit – Invalidity pension or grant – Funeral grant – Survivor’s pension or grant

• 3. ADMINISTRATIVE PROCEDURES

CONT’D

• Self-employed contributions are usually

submitted quarterly.

• Payments can also be submitted monthly,

annually or via lump sum payments.

• Contributions are based on the earnings from

self-employment during the year immediately before the year in which the contribution is due.

• 4. INCENTIVES TO FORMALIZATION
• There is the provision for the payment of a

minimum pension for persons at the lower end of the scale.

• Insured persons who contribute at the

minimum earnings level are guaranteed a pension of $190.00/week.

• 4. INCENTIVES CONT’D
• The earnings of migrant workers are totalised

under the Reciprocal Agreements with various countries and are used to determine qualification for pension benefits.

• Insured workers therefore benefit although

contribution payments are made in countries

• ther than the one from which they originate.
• 5. DIFFICULT TO COVER GROUPS
• Persons in the liberal professions:

Attorneys Engineers Doctors

• This group generally believes they are able to

provide for their future and do not require social security coverage.

• 5. DIFFICULT TO COVER GROUPS
• The Informal Sector

Vendors Nail technicians Itinerant vendors Agricultural workers Often these persons work at home, have no established place of business, and experience fluctuations in their earning capacity.

• 5. DIFFICULT TO COVER GROUPS
• The self-employed:

Fisher-folk Hairdressers Building contractors Directors of companies Entertainers Construction workers This group believe their income is too little and they cannot afford to withhold 16.1% of their income to pay contributions.

• 6. EXTENDING COVERAGE

Past and current initiatives

• Promotional campaigns
• Group field visits to areas where workers
• perate
• Presentations to umbrella bodies. e.g. Fisher

Folk Association, Small Business Association

• National Insurance Clearance Certificates are

required for certain transactions

• 6. EXTENDING COVERAGE CONT’D
• Filing of Unpaid National Insurance

Certificates in the Magistrates and High Court

• Legislative amendments: Unpaid

contributions become a charge on property.

• National Insurance certificates are required for

the sale and purchase of property.

• 6. EXTENDING COVERAGE CONT’D

Proposed initiatives

• Online and mobile payments for the self

employed

• Use of portable bank card readers to facilitate

payment at workers location

• Flexible contribution rates
• Billing the self-employed based on historical

information