NIS Chief Calls on Workers to Track Employer Contribution Payments

Members of the National Insurance Scheme (NIS) have been told to keep a close watch on their contribution records so they can confirm employers are forwarding payments as the law requires.

Portia Magnus, who leads the NIS within the Ministry of Labour and Social Security, said compliance with the National Insurance Act is not universal among employers.

She urged workers not to postpone such reviews until they are nearing retirement. Employees should act now to satisfy themselves that their current employer is actually remitting contributions on their behalf, Magnus said.

Where a previous employer has failed to pass contributions to the NIS, that should be reported to the scheme at once, she added.

"Just give us the information on the employer because a part of the role of the National Insurance Scheme is to ensure that all employers are compliant with the requirements of the law. The requirements in the first instance are that the employer is registered, that all employees are registered, and that the correct contributions are being remitted monthly, and the annual returns submitted at the end of the year," she said.

"In terms of self-employed persons, we do monitor self-employed persons as well, basically assisting to ensure that the contributions that they're making are correct in terms of doing the calculations. So, in the parish offices of the ministry, we do have a cadre of staff that work along with the activities of the National Insurance Scheme. Among those staff members, we do have a team of inspectors as well… [and] a part of their responsibility includes the monitoring of employers to ensure that they are indeed complying with the provisions of our legislation," she added.

Magnus said payments from employers do not always mean full compliance. "So yes, employers are paying, but we still do have some employers who are not necessarily compliant with the provisions of the legislation," she noted, adding that the NIS still takes employers to court over breaches of the law.

"We do need them to make the contributions and submit the annual returns. You see, the thing with the National Insurance Scheme, we're not here to put any employer out of business, and so if you are having a difficulty to remit all the contributions as required by the legislation, come in and talk to us. Contact us, we will work out a payment arrangement for you because at the end of the day, it is your workers who would have been working along with you to build your business who are going to be disenfranchised," Magnus stated.

"Because at the end of the day and not even all the way to retirement, because anything can happen, the person could develop an illness before they retire. That person could pass away also before retiring, so it is your workers that will feel it at the end of the day, depending on whatever situations may arise in their life and you don't want your workers to be at a stage where they need this kind of support and they're not able to get it," she added.

Magnus also said ministry inspectors sometimes face intimidation, especially when they visit smaller businesses.

"They have had experiences where the worker, knowing fully well that their employer is present in the workplace, would say that the employer is not there to come back another time. Now, obstructing any inspector from carrying out their duties really is an offence under the law and there are penalties in terms of fines and terms of imprisonment," she noted.

"Now what the employee does not understand is that when he or she does that, they are really disenfranchising themselves and putting themselves in a precarious position. Because when you enable your employer to evade the NIS and not remit your contributions or even go to the point of telling the employer not to, then when you need a benefit, there will be none for you," she added.

The NIS was set up to shield contributors and their dependents through social insurance benefits for those who meet eligibility requirements. That mandate is being carried out today, with roughly 140,000 pensions and other benefits now in payment. These cover retirement and invalidity pensions, widows' and widowers' pensions, survivor pensions for children, health insurance, maternity allowance, a full range of employment injury benefits, and funeral grants.