The Tribune

The National Insurance Board (NIB) yesterday said only higher-paid workers will be impacted by the latest wage ceiling increase.

The social security system, in a statement issued, said only workers earning more than $670 per week or $2,903 per month will be impacted by legally-mandated changes that - from 2010 - require it to adjust pensions, grants and the wage ceiling for the effects of inflation every two years.

The latest adjustment, which took effect yesterday, is designed to ensure pensions, in particular, retain their value and are not devalued by the rate of inflation as measured by the Retail Price Index.

"The insurable wage ceiling has been adjusted to $710 per week or $3,077 per month," NIB said. "The adjustment in the ceiling is in keeping with the social security mandate to maintain relative parity between the worker's wages and benefits.

"In that regard, only higher paid workers - persons whose earnings currently exceed $670 per week/$2,903 per month - will be affected. This ceiling adjustment of $40 per week/ $173 per month translates to a maximum increase in contributions for employed persons of $3.92 per week."

NIB said this will be "shared $1.56, employee, and $2.36, employer, and $15.22 per month for self-employed persons. The adjusted ceiling will allow workers to insure more of their income and, in return, receive better benefits".

NIB reiterated that the adjustment in the insurable wage ceiling is not an increase in the contribution rate. The rates at which contributions are paid remain unchanged - 9.8 percent for employed persons; 8.8% percent for self-employed persons; five percent for voluntarily insured persons; and two percent for summer students and workers in receipt of retirement benefit.

Pensioners will enjoy adjustments of up to 4.8 percent that will be paid in October, and are retroactive to July this year. NIB's maternity grant has been increased from $490 to $515, and the Funeral Benefit from $1,810 to $1,900.