Delinquent employers on NIS’ radar

The National Insurance Scheme (NIS) will be implementing stringent measures to go after employers who are guilty of failing to pay in their employees contributions to the scheme.

This warning came from Minister of Labour and Social Security and the Third Sector Colin Jordan who reported that the NIS faces the growing problem of delinquency among some businesses who are neglecting their statutory responsibility by not remitting the contributions they have deducted from their employees’ salaries and the employer portion.

Speaking at the NIS 55th anniversary GEM Awards ceremony on Friday, Minister Jordan said there are also instances in the construction industry, but also in other sectors, of treating genuine employees as self employed or as sub-contractors and not participating in the NIS, all in an effort to reduce costs. He said these employers are not providing decent work, but could almost be considered precarious work.

“The NIS will implement more stringent measures to address these untenable situations. We must ensure that viability of the fund is secured for the benefit of the working population. Workers must be protected in our social security system,” he said.

Minister Jordan also revealed that he had received the approval of the Cabinet to amend the Labour Clauses (Public Contracts) Act. He said the proposed amendment will insist on minimum terms and conditions for workers, including participation in the social security scheme of the country, the NIS, in situations where private businesses are benefiting from contracts funded by taxpayers.

Meanwhile, the minister also voiced concerns about the low level of compliance among self-employed persons. The minister said what is particularly disturbing is that the evasion is as widespread among professionals as it is among tradespersons and the informal sector.

He admitted that more must be done to pressure defaulters and bring them into the social protection system and save them from themselves for their own good before they reach their senior years.

“I encourage self-employed persons in the informal sector to contribute to the scheme. The scheme is inclusive with a very low earnings requirement, hence, there is no excuse for those failing to comply.

“Many of these persons run the risk of not qualifying for a pension when they retire. Daily, persons visit the department with the belief that on reaching pensionable age they can collect a non-contributory pension. “There is simply no good reason why a person who worked in Barbados should go without some guaranteed income when in their last years. NIS is more than a contribution. It’s a lifeline,” he said.

Jordan said the NIS has accumulated a diversified portfolio of assets which totalled over Bds$4 billion as of March 31, 2022, which places the organisation very near the top, if not at the top, of the list of major financial institutions in the country.

Over 108 000 insured persons are registered with NIS, comprising temporary and permanent government employees, private sector employees and self employed persons who are currently eligible to receive a range of benefits from the scheme.

Jordan applauded the department for reaching its 55th milestone.

Several employees, under the GEM Awards programme were recognised for their contribution to the organisation’s success.

The Diamond GEM award was presented to Employee of the Year Justin Cumberbatch from the Accounts Section, while employee John Bushelle received an award for 45 years’ service to the NIS. anestahenry@barbadostoday.bb