National Insurance Contributions
The payment of National Insurance contributions is compulsory for employees and unpaid apprentices who are registered or eligible to be registered under the system.
What Are Contributions?
A contribution is a weekly payment fixed in relation to the wages/salaries of the insured person. Salaries and wages are structured into 16 earnings classes each of which carries an assumed average weekly earning.
With effect from March 03, 2014, Contribution Rates have increased from 11.7 percent to 12 percent of the assumed average weekly earnings as shown in the Earnings Classes and Contributions based on 12% contribution rate.
With effect from March 03, 2014 the income ceiling of $10,000.00 per month has been increased to $12,000.00 per month in order to maintain the real value of insured income.
Who Pays Contributions?
Payment of the contribution is shared between the employer and employee in the ratio of approximately 2:1 in accordance to the rate set out in the Act. The employer is statutorily obligated to deduct the employee’s share no later than on the date of payment of salaries/wages.
Employers must remember that contributions for all employees (including paid apprentices, domestics and casual agricultural workers ) and unpaid apprentices, are due from the start of their employment, apprenticeship or probationary period.
Notwithstanding the cost sharing described, the EMPLOYER is responsible for remitting the total contribution to the NIBTT.
Any employer who fails to pay any contributions, or deducts part of the employer’s contribution from the employee’s wages, or contravenes any other requirement of the law, commits an offence and can be prosecuted and fined.
In addition, the employer is obligated to maintain pay records for each of his employees including the unpaid apprentice and domestic. Such records must include the following particulars of each employee:
- Full name National Insurance
- Number Salary/wages and the period to which such salary/wage relates.
- The value of the contribution paid for each week of the period to which the salary/wage relates
- The total contribution paid for the period to which the salary/wage relates
Contravention of this requirement may attract a fine of $4,000.00 and 6 months imprisonment upon summary conviction.
Residents Working Abroad
If you have an employee who is in insurable employment, (See "Which Employees Must Be Registered"), and that employee is required to work abroad for you, then, providing that:
- The employee is ordinarily resident in Trinidad and Tobago; and
- You maintain a place of business in Trinidad and Tobago
Contributions must be paid for the employee at the normal rates during the period that he/she is working abroad.
The following are instances in which no deductions are made from the employees wages/salaries and in which the employer only, pays a contribution:
- Employees under 16 and over 65 years.
- Employees aged 60 years to under 65 years who have retired, and have started to receive their Retirement Benefit and subsequently returned to work.
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