About us
About us
History
“Barbados’ Social Security System was set up on June 5, 1967”
The development of Barbados’ social security scheme in 1967 had its origins in the late 19th century. This section highlights major timelines in the growth of national social security, from the passing of the Poor Law Relief Act in 1880 to the creation of the Maternity Grant in 1985.
How the NIS Functions
Our social security scheme is run by the National Insurance Board, a body corporate, and the National Insurance Office, which is a unit of the Civil Service.
The Minister responsible for Social Security makes appointments to the Board, and the National Insurance Office falls under his control.
The Board is made up of ten members and is tripartite, meaning that it’s made up of representatives of the government and workers’ and employers’ organisations.
The Minister may also, as necessary, devise regulations under the National Insurance and Social Security Act to regulate the scheme.
The functions of the board and the director are outlined in the relevant act and regulations. Generally, control and management of the fund are entrusted to the Board.
The Director, who is the Chief Executive Officer of the department, is responsible for determining matters such as the right to benefit, and for the day-to-day management of the office.
Vision and Mission
Vision: “To be a caring, efficient and reliable social security provider for all customers.”
Mission: “To provide timely social security services through the efficient collection and management of funds by a highly motivated, caring and reliable, customer-oriented staff.”
The National Insurance Board, which runs the Scheme, has the following strategic goals:
- To ensure timely processing of benefits
- To maximise compliance in terms of collection
- To maximise return on investment for the Fund
- To ensure efficient world-class customer service
- To establish a cadre of competent, efficient and highly motivated work force
- To improve internal and external communication
Before the Social Security Scheme
Social security schemes in Barbados and other English-speaking Caribbean countries began as fairly comprehensive programmes similar in scope and coverage to those in larger countries.
Social security schemes in Barbados and other English-speaking Caribbean countries began as fairly comprehensive programmes similar in scope and coverage to those in larger countries.
- 1880 – Poor Law Relief Act Organized through church wardens, poor relief committees and poor law inspectors, it provided relief in cash and kind.
- 1916 – Workmen’s Compensation Act From this time, employers were to pay compensation to any workmen who received a personal injury by accident at work.
- 1928 – Widows’ & Orphans’ Pension Act A contributory widows’ and orphans’ pension scheme was set up for male public servants. Four per cent was deducted from the salaries of contributors but those who failed a medical examination of fitness were not allowed to contribute.
- 1938 – Pensions Act Prompted by inadequacies of the Poor Relief System but, because applicants had to go through a means test that was rigidly administered, few qualified.
- 1947 – Under the Pensions Act Pensions for public servants with ten or more years’ service and gratuities for those with less service were granted. They received pensions on retirement, normally at age 60, though in some cases persons retired after reaching age 55. These pensions were paid out of government revenue.
- 1955 – Sugar Workers’ Provident Fund provided benefits for retired and displaced sugar workers and for the widows and other dependents of deceased workers. Certain sugar workers received a modest pension on retirement and a funeral grant on their death. But they made no actual payment towards the fund.
Creation of the Scheme
The National Insurance Scheme, which seeks to reinforce the principle of “mutual solidarity”, recognises that Barbados’ greatest asset is its people.
Trace its birth and growth over the years here.
General features
- June 5, 1967 – Social security scheme set up in Barbados. Contributions paid by sticking stamps to contribution cards of insured persons.
- 3rd November 1969 – Sugar Workers’ Provident Fund commenced
- 1978 – Stamp method replaced by direct payment. Contributions paid in cash to the National Insurance Office.
- January 1987 – Contribution card system replaced with Contribution Certificates and Earnings Schedules, Benefits Evolve Date Benefit.
- 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.
- 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.
- 8th 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.
- 17th 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 of 2.5% for employees and 1.0% for 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 and over the pensionable age of 67.
- 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 2021 – The maximum insurable earnings ceiling is $1,126 for weekly paid workers and $4,880 for monthly paid workers. The funeral grant was increased to $2,185, while the maternity grant was increased to $1,260. Minimum old age contributory pension was increased to $243 per week. Minimum non-contributory old age pension was increased to $230 per week.
Board Members
Mr. Leslie Haynes, Q.C
Chairman
Mr. Colin ‘Tony’ Walcott, J.P.
Representative, Barbados Employers’ Confederation
Mr. Stephen Austin
Representative, Barbados Hotel and Tourism Association
Mrs. Claudette hope-greenidge
Chief Labour Officer
Mr. Ian Carrington
Director of Finance and Economic Affairs
Ms. Octavia Forde
Representative of the Permanent Secretary, Ministry of Finance and Economic Affairs
Mr. Wayne Walrond
Representative, National Union of Public Workers