General features

• 5^th June 1967 – Social security scheme set up in Barbados. Contributions paid by sticking stamps to contribution cards of insured persons.
• 3^rd November 1969 – Sugar Workers’ Provident Fund commenced.
• 1971 – Employment injury benefit introduced.
• 1971 – Self-employed became insurable for long-term benefits – invalidity, survivors’ and old age contributory and funeral grants.
• 1974 – Coverage for the self-employed extended to include sickness and maternity benefits.
• 1975 – Minimum pension introduced – $15 a week.
• 1975 – Spouses of insured persons receive funeral grants.
• 1977 – Age at which surviving spouse could qualify for survivors’ pension for life was reduced from 55 to 50.
• 1978 – Stamp method replaced by direct payment. Contributions paid in cash to the National Insurance Office.
• 1981 – Rate of sickness benefit increased from 60% to 66 2/3% of insurable earnings.
• July 1981 – Unemployment scheme introduced.
• July 1982 – Eligible persons begin to receive unemployment benefit.
• 1982 – National Insurance Department becomes responsible for Non-contributory Old Age pension instead of Welfare Department.
• 1985 – Age at which surviving children could receive survivors’ pension was increased from 16 to 25 once they were students.
• 1985 – Maternity Grant introduced.
• January 1987 – Contribution card system replaced with Contribution Certificates and Earnings Schedules, Benefits Evolve Date Benefit.
• 2nd January 1989 – Unemployment benefit became payable to a person insured for at least 52 weeks prior to becoming unemployed.
• 1990 – Minimum pension increased over the years to $76 a week.
• 1991 – Rate of unemployment benefit was changed to 60% for first 10 weeks and 40% for remaining 16 weeks.
• 2003 – The pension system was reformed providing a flexible retirement age, annual increases (indexation), and an increase in the pensionable age.
• January 2006 – The pensionable age became 65 ½ years.
• 8^th March 2007 – The Catastrophe Fund Act, 2007 commenced. The purpose of the Fund is to provide financial aid to any low income earner who owns and occupies a chattel house where a) the value of the house does not exceed $150,000; b) the owner earns less than $25,000 annually and c) the house is damaged or destroyed by a catastrophe.
• 2010 – The pensionable age became 66 years.
• 17^th June 2010 – The Retraining Account for the retraining of unemployed persons who have contributed to the Unemployment Benefit Account was established.
• January 2014 – The pensionable age became 66 ½ years.
• January 2018 – The pensionable age became 67 years.
• July 2018 – The minimum old age contributory pension was increased to $239 per week, while the minimum non-contributory old age pension was increased to $225 per week.
• October 2018 – A Health Service Contribution at a rate of 2.5%, to which employers are required to contribute 1.5% of insurable earnings and 1.0% by employees and self-employed persons was added to the Contribution Rates and Levies payable. However, it is not applicable to those persons under the age of 16 or over the pensionable age of 67.
• 2020 – The Business Interruption Benefit of $1,500 per month for April and May became available for insured self-employed persons as a result of COVID-19.
• June 2020 – The Severance Payments Act was amended temporarily as a consequence of the public health emergency due to COVID-19 in March 2020. The Severance Payments (Amendment) Act, 2020 commonly known as the “Sunset Legislation” determined the new terms and conditions for claiming severance due to layoffs during the period March 1 to May 31, 2020.
• 2020 to 2022 – The maximum insurable earnings ceiling is $1,126 for weekly paid workers and $4,880 for monthly paid workers. The funeral grant is $2,185, while the maternity grant is $1,260. Minimum old age contributory pension is $243 per week, while minimum non-contributory old age pension is $230 per week.