The Grenadian government has unveiled a comprehensive multi-year plan to incrementally raise contribution rates for the National Insurance Scheme (NIS), culminating in a total contribution rate of 16% by the year 2031. This structured increase is designed to ensure the long-term sustainability of the nation’s social security system.
Under the newly outlined schedule, the contribution burden will continue to be shared between employees and their employers. The increases will be implemented gradually on an annual basis. Starting from the current total of 12% in 2023, the rate will climb by 0.5% each year, reaching the 16% target in 2031. This means the employee portion will rise from 5.5% to 7.5%, while the employer’s share will increase from 6.5% to 8.5% over the eight-year period.
Concurrently, several other key parameters of the scheme will be adjusted. The Maximum Insurable Earnings, which sets the ceiling for contributions, will see an increase from $1,160 weekly ($5,000 monthly) in 2023 to $1,200 weekly ($5,200 monthly) in 2024, with further adjustments anticipated in subsequent years. Furthermore, the minimum number of contributions required to qualify for a retirement pension will be raised in annual increments from 500 to 750 by 2033 or later. The official pensionable age will also be progressively elevated from 60 to 65 between 2023 and 2028.
The National Insurance Service has reiterated the importance of compliance with payment deadlines. Contributions for any given month are legally due by the end of that same month, with a standard 14-day grace period provided. Employers who fail to remit payments within this window will face significant financial penalties, including a 10% surcharge on the outstanding amount plus an additional 1% interest charge for every subsequent month, or part thereof, that the debt remains unpaid. This enforcement underscores the government’s commitment to safeguarding the integrity of the national social security fund.