Bahamas Experience in Social Protection and Formalization Submitted - - PDF document

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Bahamas Experience in Social Protection and Formalization

Submitted by

Cecile S. Williams-Bethel

Senior Deputy Director

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Agenda

Coverage of the Scheme Contribution Rates Administrative Procedures Incentives to Formalization Difficult-to-Cover Groups Examples

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2015 Coverage

Covered:

• Employed Persons: 9.8%

EE=3.9% ER= 5.9%

• 145,000 - EEs
• 13,472 - ERs
• Self-employed Persons: 8.8%
• 10,339
• Voluntarily Insured : 5.0%
• 2

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2015 Coverage

Not Covered:

• Non-Bahamians who do not

have the right to work

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S/E Rate and Ceiling

Rate

• 8.8%

Ceiling

• $650 per week/$2,817 per month
• Adjusted every 2 years- RPI

(2010) Annual

• Advise of income likely to make

for the year

• Contributions paid on this

income

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Administered from 28 Locations

• n

15 Islands

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Can Pay

• Several months at a time
• By cash, cheque, direct deposit

from bank account, credit card

• New facility
• Employer Self-Service Portal
• Complete entries on-line
• Pay by credit card

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Administrative Procedures

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Comparative 2015 Stats.

NIB Registrants

• Self-Employed – 10,339
• Dept. of

Statistics

• Self-Employed – 27,525
• Informal – 10,585 (operating

without a Business License)

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Incentives

Entitlement to Benefit – biggest benefit

• Short Term
• Esp. Injury on the job
• Long Term
• Esp. Retirement

On time payments

• No interest

Tax Compliance Certificates

• Letter of Good Standing
• Only if contributions are paid up

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Difficult-to-Cover Groups

Who

• Tuck shops
• Street Vendors
• Peanut vendors
• Newspaper stands
• Car Wash Operators
• Tire Repair Shops
• Etc.

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Difficult-to-Cover Groups

Why

• No desire
• Small income
• Not steady
• Assistance possible anyhow

Barriers

• Ad hoc lump sum payment
• Less paper work

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Examples

Past

• Wage bands and only Injury Benefit

for some Now

• Pay on ceiling, all at same rate and

all covered for Injury Benefit Proposed

• Pay lump sum
• Simply form
• Provide incentive to widen the base
• Mobile paystation in New

Providence

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