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: Home : National Insurance Scheme (NIS) : Who is Covered? N.I.S. PATH

Who is Covered?

EMPLOYED

Employed persons contribute on the basis of their earnings. The National Insurance Act stipulates an insurable wage ceiling, which means that contributions are calculated in respect of a specific portion of one’s earnings. Currently the ceiling is $1,500,000.00 per annum with effect from Janauary 7, 2013.
The employed person’s contribution is matched by his employers. The total rate of contribution is five percent (5%) – 2½ % is paid by the employee and 2½% by the employer.  This includes a contribution for the National Health Fund of 1% i.e. ½ % by the employee matched by ½% by the employer.

The table below shows the maximum amount payable by and in respect of insured persons:

  Maximum Wages Employee Contribution Employer Contribution Total NIS/NHF Contribution
Weekly: $28,846.00  $721.15 $721.15 $1,442.30
Fortnightly: $57,692.00 $1,442.30 $1,442.30 $2,884.60
Monthly:  $125,000.00 $3,125.00 $3,125.00  $6,250.00

 

The following categories of employed persons make contributions by affixing a $100.00 NIS stamp to Stamp Cards with effect from Janauary 7, 2013.  The breakdown is as follows:

 Category Insured Person Employer Total
Domestic Workers $50.00 per week $50.00 per week $100.00 per week

  

SELF EMPLOYED

Who is a self-employed Person?

A self-employed person is one who works independently in ones own business. Included in this category are barbers, contractors, doctors, dressmakers, farmers, fisherfolks, hairdressers, higglers, informal commercial importers and Jamaican nationals working in foreign embassies in Jamaica.

A self employed person should register by completing, an insured person’s registration form (R2). On completion the National Insurance Office prepares a pink registration card (R5) with the name and National Insurance number of the insured, which is given to either the insured person or the employer.

Self -employed persons contributors pay national Insurance by affixing a $100.00 National Insurance Stamp card with effect from Janauary 7, 2013.

How much do self- employed and voluntary contributors pay?

Self -employed persons, whose gross annual income is $20,800 and over also pay 5% of this additional income as contribution. This 5% is payable on gross annual income up to a maximum of $1,500,000. That is to:

  1. obtain them from the National Insurance Office,

  2. purchase and affix stamps and

  3. surrender them to the National Insurance Office at the date of expiration.

National Insurance stamp cards are sold at all Post offices and at the National Insurance Head Office, 14 National Heroes Circle. 

VOLUNTARY CONTRIBUTORS

Who are Voluntary Contributors?

These are insured persons under retirement age who:

a) have made a specified number of contributions as employed or self employed

b) are no longer liable to contribute in either category

c) wish to continue contributing to maintain their contribution record and

d) have been granted written permission by the Minister.

How much do voluntary and self- employed contributors pay?

Self-employed persons, whose gross annual income is $20,800 and over also pay 5% of this additional income as contribution. This 5% is payable on gross annual income up to a maximum of $ 1,500,000. That is to:

  1. obtain them from the National Insurance Office,

  2. purchase and affix stamps and

  3. surrender them to the National Insurance Office at the date of expiration.

National Insurance stamp cards are sold at all Post offices and at the National Insurance Head Office, 14 National Heroes Circle.

 


 
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