Employee/Employer
Should contributions be paid for domestic workers? Are contributions deducted from wages as well as tips? What is the contribution rate for employed persons? Should contributions be deducted from the wages of Non-Bahamians? When an employer is in arrears, can the employee be made to pay a portion of the outstanding contributions? How can employees be sure that contributions are being paid for them? Is there a different rate of contributions for expatriate nurses or teachers than there is for Bahamians? Would National Insurance tell employers that their staff was asking questions about their contribution status, thereby placing their jobs in jeopardy? Are persons who have contributed to National Insurance from its inception, never claimed, entitled to any rebate?
Self-employed Persons
What benefits does the self-employed person's contributions entitle them to? What is needed to be registered with National Insurance as a self-employed person? Is there a time limit for self-employed persons to register and start making National Insurance contributions? When should contribution payments for self-employed persons be sent into National Insurance? Who pays the contributions for self-employed persons?
Voluntarily Insured Persons
What benefits can the Voluntarily Insured Person receive? What is the contribution rate for Voluntarily Insured Persons? Who is considered a Voluntarily Insured person?
Should contributions be paid for domestic workers? Yes. Contributions are to be paid in respect of all workers, full-time, part-time as well as probationary workers; this include domestic workers who may be working by the hour, the day, or by the week. Are contributions deducted from wages as well as tips? No. Contributions are paid on basic wages only; tips and gratuities are not counted for the purpose of assessing contribution payments. What is the contribution rate for employed persons? Employed persons who earn less than $60 per week pay contributions at the rate of 1.7 percent of their wages; their employers contribute 7.1 percent on their behalf, for a total of 8.8 percent. Employed persons who earn from $60 per week up to the weekly insurable wage ceiling of $400 (as of January, 1999) pay 3.4 percent. The only exception to this are employed persons who are eligible for a pension from the consolidated fund - "Pensionable Civil Servants." This group pays contributions at 3.4 percent on their weekly wages up to $110, and 1.7 percent on their weekly wages between $110, and $400. Should contributions be deducted from the wages of Non-Bahamians? Yes. Contributions are to be deducted from the wages of all employed persons, Bahamians and non-Bahamians, before they are paid, with very few exceptions. These exceptions include persons working in the Diplomatic Corps who are exempted from Social Security payments under the provisions of the Vienna Convention. When an employer is in arrears, can the employee be made to pay a portion of the outstanding contributions? No. The employer is responsible for paying all arrears of contributions. The National Insurance Contribution Regulations 33, states that: "No deductions should be made from wages other than such that are paid in respect of the contribution week for which a contribution is payable". The employer therefore, cannot go back into the employee’s wages to secure arrears. The employer is totally responsible for these late payments. How can employees be sure that contributions are being paid for them? The employee has a right to examine his/her employer’s payroll records and also copies of payments/receipts. The employee can also enquire into his/her contribution status by visiting any of the Board’s Regional offices. Is there a different rate of contributions for expatriate nurses or teachers than there is for Bahamians? No. All employed persons pay the same rate of contributions. Would National Insurance tell employers that their staff was asking questions about their contribution status, thereby placing their jobs in jeopardy? No. Any questions/concerns about an employee's contributions are kept in strict confidence. Additionally, as of January, 1999, employers who terminate, demote, penalize or victimize in any way, their employees who request information from the Board on their contribution status, will be liable to a fine of up to $1,000, imprisonment, or both. The burden of proof will rest with the employer. Are persons who have contributed to National Insurance from its inception, never claimed, entitled to any rebate? No.
What benefits does the self-employed person's contributions entitle them to? Self-employed persons in class "A" qualify for the following six (6) benefits: i. Funeral Benefit; ii. Invalidity Benefit; iii. Maternity Benefit and Grant iv. Retirement Benefit; v. Sickness Benefit; vi. Survivors' Benefit. Self-employed persons in class "B" qualify for these as well as the three Industrial Benefits - Injury, Disablement, and Death Benefits, and unlimited free Medical Care. What is needed to be registered with National Insurance as a self-employed person? The self-employed person must complete two (2) forms - The Application Form to Register A Business (Form R.1) and an Application To Register As An Insured Person (Form R-4). Additionally, proof of date-of-birth in the form of a birth or baptismal certificate or passport is also needed. Is there a time limit for self-employed persons to register and start making National Insurance contributions? Yes. Self-employed persons should register with the National Insurance Board within 10 working days of commencing operations; they should start paying contributions from the end of their first month of operations. When should contribution payments for self-employed persons be sent into National Insurance? Contribution payments are to be sent in at the end of each month, or by the 15th of the following month. Who pays the contributions for self-employed persons? Self-employed persons are responsible for paying their total contributions.
What benefits can the Voluntarily Insured Person receive? The Voluntarily Insured Person may qualify for the following benefits: Retirement, Invalidity, Survivors', and Funeral Benefits, as well as the Maternity Grant. What is the contribution rate for Voluntarily Insured Persons? The contribution rate for Voluntarily Insured Persons is 5 percent of their average weekly insurable wage or income. This rate is based on their last year worked as an employed or self-employed person. The weekly contribution rate is payable on a maximum weekly insurable wage or income of $250, or $400 as of January, 1999. Who is considered a Voluntarily Insured person? Under the National Insurance Act, a Voluntarily Insured Person can be any person who was previously registered as an employed or self-person, is no longer required to pay contributions in either class, and has applied to the Director to be registered and to pay contributions as a Voluntarily Insured Person.