2019 Contribution Reform
What is the Contribution Reform?
The Contribution Reform refers to the changes being made to the Social Security legislation as it relates to the payment of social security contributions by both the employer and the employee who works for 8 hours or more in any given week.
Since 2003, the existing contributions schedule has remained the same. Over the last 2 years, SSB conducted consultations all over the country talking to persons in the private sector, in the government of Belize and the unions to impress on the need to increase the contributions for the sustainability of the fund.
After extensive consultations with the social partners and key stakeholders including the National Trade Union Congress of Belize, Belize Chamber of Commerce and Industry, Belize Business Bureau, and other representative groups, the Cabinet approved a phased in approach as proposed by SSB and the social partners.
The increase in contributions translates to an increase in Benefits for all persons in the new wage ceiling. The table below reflects the approved increase in the contribution rate as well as the increase in the wage ceiling:
|Effective Date||2019 (Current)||July 1, 2019||January 6, 2020||January 4, 2021|
When will these changes come into effect?
The changes will occur over a 3-year period; the first set of changes will occur on July 1, 2019 where the contribution rate increases by 0.5% to 8.5% and the ceiling will go from $320 to $440.
On January 6, 2020, the contribution rate will increase by 0.5% to 9% and the ceiling will go up from $440 to $480.
On January 4, 2021, the contribution rate will increase from 9% to 10% and the ceiling will go up from $480 to $520.