NIS Administers Employment Stabilisation Programme

The Prime Minister in the recent financial and budgetary proposals outlined an employment stabilisation programme for eligible employers experiencing cash flow problems. The programme is being administered by the National Insurance Board.

In order to qualify

1. The employer MUST maintain the current number of persons employed and the total payroll expenditure as at June 30th 2009. Those levels must be in line with the National Insurance Office records as at June 30th 2009.

2. The employer MUST be compliant with its National Insurance obligations as at June 30th, 2009 and must continue to pay the employee and specified employer portions of National Insurance contributions during the period July 1st 2009 to June 30th 2010. Since the National Insurance percentage (6.75%) of the employer portion is being deferred, the total contribution rate will now be 14.60%.

Employee 10.10% Employer 4.50% Total 14.60%

3. The employer is experiencing cash flow problems. Audited Financial Statements and the most recent management accounts must be presented for review by the NIS to support this assertion.

4. The employer MUST NOT be in arrears of contributions to the National Insurance Fund as at June 30th, 2009.

5. The employer has not entered and will not enter into the Waiver of Interest Programme currently offered by the National Insurance Office during the period July 1st, 2009 to June 30th 2010.

6. The repayment terms of the loan, exclusive of interest are $1,000 and less than $10,000 18 months $10,000 and less than $20,000 24 months $20,000 and less than $50,000 36 months $50,000 - and less than $100,000 48 months $100,000 and greater 60 months

7. The interest rate will be 3% per annum on the loan with effect from the point of deferment. This means that the interest starts to accrue as soon as the contribution payment has been deferred.

8. Employers desirous of accessing the employment stabilisation programme must sign a loan agreement with the National Insurance Board.

Please note, however that the employer a) Must continue to submit monthly contribution schedules

b) With respect to the contribution rate split, the percentage allocated to National Insurance (6.75) is the ONLY portion being deferred. The employer will continue to pay the percentages related to non-contributory, unemployment, employment injury, severance and the training levy.

c) The loan agreement will be terminated if the employer does not honour the commitment to maintain employment levels or if current payments are not made to the National Insurance Fund.