Informal Workers May Pay NIS

The Government has been exploring the possibility of the full incorporation of informal workers into the National Insurance Scheme-NIS. On Wednesday, Minister of Finance Colm Imbert said the costs and benefits of such a plan must be carefully examined. He said the proposed framework would make it mandatory for all working persons, whether formal or informal, to register and contribute towards the NIS. The benefits of this approach include much-needed coverage for the most vulnerable in society and much-needed support for the long-term sustainability of the NIS. Mr. Imbert said since occupational pension liabilities are now measured in the billions, the Government must proactively manage the issue. One recommendation is to increase the retirement age over a 10-year period from the current 60 years to 65 years of age, from the year 2025. Additionally, Government can consider freezing the minimum pension until it is at most 80% of the minimum wage. Mr. Imbert made the announcement during his keynote address to the C.A.F Development Bank of Latin America's webinar on Pensions and Healthcare Systems.