Self-employed people urged to contribute to NIS

If the COVID-19 pandemic has shown one this, it is that the unexpected can be disruptive and oftentimes has devastating impacts.

With this mind, acting Minister of Labour Dr. Shantal Monroe-Knight on Sunday urged self-employed persons to contribute to the National Insurance Scheme (NIS) as a means of safeguarding their future.

Her comments came during a service to celebrate the National Insurance Department’s 55th anniversary at the People’s Cathedral, Bishop Court Hill.

Speaking under this year’s theme, “Is your future secured?”, Monroe- Knight lamented that fewer than 20 per cent of the people who are or can be classified as self-employed actually contribute to the fund.

During the height of the pandemic and the lockdown periods between 2020 and 2021, many self-employed people suffered as businesses shuttered and revenue declined.

Monroe-Knight reminded that an estimated 1,481 self-employed people who were up-to-date with their NIS contributions were provided with some relief through a self-employed business interruption benefit.

“We urge all self- employed persons, masons, cosmetologists, architects, mechanics, engineers, farmers, fishermen, lawyers, entertainers, entrepreneurs, dentists and doctors to contribute to the scheme. Doing so secures your future. For as little as $15.56 a month you’ll be provided with coverage for several benefits such as sickness, maternity grant or benefits, invalidity grant or pension, survivors grant or pension and old age contributory grant or pension. A self-employed person who contributes $15.56 per month for at least 10 years or 500 contributions can secure a minimum old age contributory pension which is $243 per week. I urge self-employed please aim to qualify for the old age contributory pension,” she stressed.

Relaying a personal experience, the minister spoke of her father, a mechanic and former calypsonian, who through an accident became immobile. She noted that because of his foresight in making his contributions, it has allowed him a level of independence to take care of himself financially.

“It is practical and necessary. Being prepared for the unexpected is necessary and it is wisdom …  And therefore, we must ensure that we be like those five wise virgins and ensure that we always have extra oil in our proverbial lamps,” she added.

General benefits through the scheme include: sickness, maternity, injury, disablement, invalidity, funeral grant, death benefit, old age contributory pension, non-contributory pension, survivor’s grant or pension and unemployment. In terms of total benefits payable, Monroe-Knight reported that in 2021 the National Insurance Department paid $785 million in benefits compared to $771 million paid in 2020 and $751 million paid in 2019. The amount paid in unemployment benefits claimed in 2001 was $44.6 million compared to $147.5 million paid in 2020 and $49.3 million paid in 2009.

Monroe-Knight stressed that for the future, the National Insurance Department will continue to improve its business processes in the age of digitalisation and she encouraged employers and employees to do likewise by registering online with the NIS online portal. Moreover, she applauded the staff of the National Insurance office for its dedication and commitment to serving its public, doing everything possible to have their claims processed in the shortest possible time frame. (KC)