For the past week we've been reporting on the plan to increase social security contributions next year. It is part of an ongoing contribution reform - whose implementation was delayed last year due to COVID.
But, it will resume this year - for the final 1% increase in the rate of SSB's contributions. But that comes at a cost to employees and employers - who were not forewarned or sensitized abut the change which goes into effect in January.
In fact, it was not formally announced until today - in a matter of fact release from the Social security Board. The release simply says that Cabinet has approved the increase and it comes into effect on January third, 2022. It adds, quote "this final phase of increase aims to strengthen and expand the adequacy of future benefits paid to employees" end quote. So what's the bottom line of your paycheck and your boss's payroll? The total contribution will increase to 10% of insurable earnings - a total of $52.00 - 28.60 from employers and 23.40 from employees, for all those making $500.00 or more per week.
The Chamber of Commerce says it considered the increase and has taken a position which will be communicated in writing.
