…raises insurable earnings ceiling
The National Insurance Scheme (NIS) has announced an increase in old-age pension which took effect from January 1, 2020; however, it was noted that the insurable earnings ceiling has increased.
NIS head office, Brickdam and Winter Place, Georgetown
This is according to a statement that was issued by NIS declaring the increase in minimum old age and invalidity pensions, an increase in minimum survivors’ pension, an increase in the insurable earnings ceiling-monthly, and increase in the insurable earnings ceiling- weekly.
The minimum rates for old age and invalidity pensions have been increased from $32,100 to $35,000 per month, while the increase for minimum rate for survivors’ pension has been increased from $16,050 to$17,500 per month.
Meanwhile, the monthly insurable earnings ceiling has been increased from $256,800 to $280,000 per month and the weekly insurable earnings ceiling has been increased from $59,262 to $64,615 per week
Last year, the Finance Ministry’s Half-Year Report had stated that NIS recorded an overall deficit of $748.4 million for the year, compared to the $715.6 million it recorded in the same half-year period for 2018. Revenue collection so far for 2019 was $11.9 billion, 9.7 per cent more than the same period for 2018.
“This improved position resulted from higher wage bands, on account of an increase in wages and salaries, as well as an improved collection of outstanding contributions from delinquent employers,” the report had stated.
Earlier this year, chartered accountant Christopher Ram, in an interview with Guyana Times explained that many persons do not see their NIS deduction in the positive light of being a contribution to their future pension, but rather, they see it as a deduction from an already small salary.
