Social Security increase to commence as of Feb 1st

Social Security increase to commence as of Feb 1st

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As of February 1st 2017 residents will begin to see 2 percentage points added to current contribution levels of Social Security and an increase in the Retirement age.

The move which was initially schedule for the beginning of January comes after the passing of the amendment to the Social Security Act 2016 in the Lower House of Parliament.

Director of the Social Security Scheme David Matthias said that the new contributions will see Private Sector employees paying 5 percent; private sector employers pay 7 per cent while public sector employees are required to pay 4 per cent and public sector employers 7 per cent. He said that self-employed contributions will remain at 10 per cent.

Matthias said that the effective pay date is no later than the 14th of March if you are paid monthly and within the first week of March if persons receive a weekly wage.

The Social Security Director also indicated that further adjustments will be made in the coming year. He said that come 2018 there will be a half per cent increase which again is shared between the employee and the employer.

“So, what is now 5 per cent will become 5 and a quarter and what is 7 per cent will become 7 and a quarter and it will continue until we reach the maximum,” the director said.

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