Employees

How Does It Benefit Me?

The system has been found to be mutually advantageous to both employers and employees. It has relieved employers of the financial obligation of paying the wages of employees who are unable to work, while simultaneously meeting the wages of temporary or replacement workers. This is done provided that the employer and employee make regular contributions to the NIC.

An employer is assured that his employees will receive a pension from the National Insurance Corporation upon retirement at no additional cost to himself once he has made the necessary National Insurance Corporation contributions.

For maximum use of the benefits, you must know something about the operations of the National Insurance Corporation, your rights and your obligations.

When Do I Register?

You may register as soon as you have attained the age of sixteen (16) years.

How Do I Register?

To register, you will need to:

Complete an Employee Registration Form (Form R3).
Present an original copy of your birth certificate/valid passport.
Work permit, CARICOM Skills Certificate or any other relevant document (for non-nationals).

If your name has changed as a result of marriage, remarriage or otherwise, you would also need to present the original document which supports your new name.

What Is the Registration Number?

This is a number issued to you at registration; it is your permanent identification. It never changes and is never reissued. It must be quoted on all correspondence between you and the National Insurance Corporation office and is located at the top right-hand corner of your national (ID) card. It must also be presented to your employer as soon as you commence employment.

What Are My Contributions?

Your contributions are 5% of your gross wages up to a specific ceiling. Your employer also pays a further 5% on your behalf.

What Are Gross Earnings?

For the purpose of determining the gross earnings, the basic salary and the following payments made to an employee must be included:

Overtime pay
All allowances
Commission/profit on sales
Payment on account of night/shift work
Service charge
Holiday pay
Travelling allowances in excess of $500.00 a month

The following are NOT to be included in gross earnings and will NOT attract deductions:

Christmas bonuses
Annual production bonuses
Severance payments
Terminal Gratuities
Payments made in Lieu of Leave

The following payments are excluded:

Tips
Meal Stipend
Uniform Stipend
Laundry Stipend
Employee discounts for purchase of merchandise for one’s own use
Reimbursements for expenses incurred which ordinarily would be expenses incurred by the business