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1. NATIONAL INSURANCE SCHEME
Let’s talk NIS

2. National Insurance
Scheme
The National Insurance Scheme is a
government compulsory contributory funded
social security scheme which offers financial
protection to the worker and his family
against loss of income arising from injury on
job, incapacity, retirement and death of the
insured.

3. ABOUT US
When was NIS Introduced?
• The National Insurance Scheme (NIS) was
established in 1966 administered under the National
Insurance Act.
• Employers and employees make contributions to
the National Insurance Fund (NIF), and these
contributions are used to finance NIS benefits and
administrative costs and surplus contributions are
invested by the board of the National Investment
Fund (NIF).
Who pays NIS?
• All employed persons, self-employed, voluntary
contributors who are 18 years old and over.

4. CONTRIBUTORS
Employed persons are those who work in a business which is not their
own. Factory workers, Private household workers such as butlers,
chauffeurs, cooks, gardeners, general helpers and housekeepers and
all other employed persons including civil servants, teachers, nurses
and members of the security forces
Self Employed persons are those who work independently
and own their business. In this category are doctors,
lawyers, accountants, consultants, vendors, Informal
Commercial Importers, dressmakers, tailors, hairdressers,
barbers, fisher folk, farmers and Jamaican nationals
employed in foreign embassies in Jamaica.

5. VOLUNTARY
CONTRIBUTORS
Voluntary Contributors are persons who do not
contribute as employed or self-employed and/or
are no longer liable to contribute because;
• They have retired from full time employment
before reaching the retirement age
• They have relocated to another country (with
which Jamaica does not have a Reciprocal
Social Security Agreement) for an indefinite
period, and
• They have become unemployed. They however
wish to continue contributing to the NIS. Approval
must be sought through the completion of the
Voluntary Contributor Application Form and its
submission to the nearest Parish Office

6. What Happens to the Contributions?
Contributions paid to the NIS are invested by
the National Health Fund (NIF) in real estate
money and equity markets. NIS benefits and
administrative expenses are paid from these
funds.
How much is the contribution?
Employee’s NIS Contribution: (Effective April 1, 2020). This is
calculated at 3% of Gross Salary up to a ceiling of $ 1, 500, 000
(per year). The maximum amount an employee pays for NIS is
$45,000 yearly or #3,750 monthly. Employer NIS Contribution: 3%
of Gross Salary (effective April, 2020). Domestic workers pay $50
per week, the same as their employers, to the NIS by attaching
stamps to a stamp card.
CONTRIBUTIONS

7. THE BENEFITS
Currently, the National Insurance Scheme
provides for the payment of the following
Benefits:
 Maternity Allowance
 Funeral Grant
 Retirement Pension
 Spouse Allowance
 Widow’s/Widower’s
 NI Gold
 Orphan Benefits
 Special Child Benefits
 Employment Injury
 Disablement Benefits
 Employment Injury Death Benefits
 Invalidity Benefits

8. BENEFITS
Maternity Allowance
Employment Injury
NI GOLD
This is payable to a Domestic Worker who has
satisfied the qualifying conditions. The benefit is
payable as a lump sum equal to eight weeks at
the existing National Minimum Wage.
The contributor must attain the retirement age
defined by the National Insurance Act and satisfy
the contribution requirements. This benefit is
payable during the life of the pensioner.
This is a health insurance plan, which provides
comprehensive medical coverage for all NIS
pensioners. Once a pension is awarded, the
pensioner automatically qualifies for coverage under
this plan. No premium is paid by the pensioner to
access this benefit. The new NIGOLD was introduced
to all pensioners effective December 1, 2005. It
provides assistance to the pensioners for health
services this includes doctors’ visits, prescription
drugs, dental, diagnostic services etc.
.
This is payable where an employee has
sustained an injury caused by an accident,
arising out of and in the course of insurable
employment, or the development of any of the
diseases prescribed by the National Insurance
Act, which can be attributed to the nature of the
job.
.
Retirement Pension

9. AMMENDMENTS
National Insurance (Amendment) Act
2003: This amendment introduced a new
benefit under the NIS called the "Funeral
Grant”
.
National Insurance (Amendment) Act
2010: This amendment introduced a new
benefit under the NIS called the “Retired
Lump Sum”.
Since the enactment of the National Insurance Act, the Parliament of Jamaica has made the following
amendments:
National Insurance (Amendment) Act
2006: This amendment introduced a new
benefit under the NIS called the
“Employment Injury”.
National Insurance (Amendment) Act
2011: This amendment introduced a new
benefit under the NIS called the “Special
Child Allowance” and increased amount
payable for “Suvivor’s Pension” .
National Insurance (Amendment) Act 2014:
This amendment increased the rate of
contributions paid by employers to the NIS
and introduced a new "Sickness Benefit" to
provide financial assistance to contributors
who are unable to work due to illness or
injury.
National Insurance (Amendment) Act 2016:
This amendment increased the maximum
amount payable for the "Funeral Grant" benefit
and introduced a new "Survivor's Pension"
benefit to provide financial support to the
surviving spouse or children of a deceased
contributor.
National Insurance (Amendment) Act 2021:
This amendment introduced a new benefit
under the NIS called the "Caregiver's Benefit,"
which provides financial support to contributors
who have to care for a family member who is
incapacitated due to illness or disability.

10. Implications for
Non-
Compliance
Employers who have been delinquent in remitting their contributions to
the National Insurance Scheme (NIS) on behalf of their employees, are
now being targeted by the Scheme in an effort to make them more
aware of the importance of paying over the contributions as well as to
highlight the consequences of non-compliance. It is emphasized that
non-compliant employers could be sued for obstructing the benefits of
their employees.
Under Section 48 of the NIS Act, if having deducted the amount from
their employees for NIS contributions, they do not pay over to us at
National Insurance and therefore their employees do not receive a
benefit, then that employee can take their employer to court and sue
them in a civil case The maximum an employee could receive in such
an instance is $260,000 in lieu of the benefit that they would have
received had the payment been made.
If employers failed to file their annual returns, this is an offence which
upon conviction of the employer carried a $1,000 fine for each year
that the Annual returns had not been filed, adding that there was an
additional fine of $500 for each day of not submitting the returns after
having been convicted.

11. Implications for
Non-
Compliance
NIS contributions not been paid by an employer, they are liable to be
taken to court to pay the sums owing along with a 20% per annum
interest payment on all outstanding amounts. To include: If any
employer fails to pay, at or within the penal- time prescribed for the
purpose, any contribution which he is liable to pay pursuant to this Act,
he shall for each offence be liable on summary conviction in a
Resident Magistrate’s Court to pay a fine not exceeding $10,000.00 or
treble the amount of contribution which is unpaid, which exerment with
or without hard labor for a period not exceeding is the greater, and in
default of such payment 12- months.
If any person is guilty of any contravention of, or noncompliance with, any of
the requirements of this Act in respect of which no special penalty is
provided, he shall for each offence be liable on summary conviction before a
Resident Magistrate to a fine not exceeding $1,000.00 or to imprisonment
with or without hard labor for a period not exceeding 6-months and where
such offence is continued after conviction such person shall be greater, or to
imprisonment with or without hard labour for guilty of a continuing offence
and in respect of each day during which such offence continues shall be
liable to a fine not exceeding $500.00

12. The overall aim and objective of the
National Insurance Scheme is to provide
social security protection for its contributors
who experience economic distress caused
by the stoppage or substantial reduction of
earnings resulting in occurrences such as
sickness, employment injury, invalidity,
childbirth, retirement or death. The National
Insurance Scheme, over the years has
gone through some significant
amendments and continues to be reviewed
periodically by the Government. Today, the
NIS has benefitted many and continues to
play an active part in the well-being of its
contributors.
CONCLUSION

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