National

Mixed Views On NIB Rate Hike

NASSAU, BAHAMAS – In less than six months, there will be a rate increase at the National Insurance Board. Residents giving mixed views on the impending national insurance board rate hike.

Published

3 years ago

January 22, 2024

Delvardo Emmanuel

NASSAU, BAHAMAS – In less than six months, there will be a rate increase at the National Insurance Board. Residents gave mixed views on the impending rate hike.

But why do some support it and others do not?

Those who support it say it’s important because of the obvious benefits. In the nearly 50 years since NIB was established, it has only had one increase and that was in 2010 when the rate increased from 8.8 percent to 9.8 percent.

But Minister responsible for National Insurance Myles Laroda has said the insurance fund could lose up to 95 million dollars without intervention.

Contribution rates are currently 5.9 percent for employers and 3.9 percent for employees.

Our News understands that the rate will be raised by 1.5 point percent.

Some residents say the cost of living is too high for more to be taken out of their salaries.

Now while the increase was first announced back in June of 2023 by Prime Minister Davis, people questioned whether now is the right time.