Prime Minister Portia Simpson Miller (second right) and Derrick Kellier (left), Minister of Labour and Social Security, chat with Elaine Barker (second left) and Elaine Emmanuel, two of the longest serving members of the National Insurance Scheme (NIS), at the NIS 40th anniversary long service awards luncheon on April 11. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
NATIONAL INSURANCE is a compulsory contributory funded social security scheme.
It offers financial protection to the worker and his family against loss of income arising from injury on the job, incapacity, retirement and death of the insured.
The Jamaican National Insurance Scheme, (NIS) is governed by the National Insurance Act and Regulations, which is the legal authority for interpreting eligibility for NIS benefits.
The NIS is administered by the Ministry of Labour and Social Security, 14 National Heroes Circle, Kingston 4, through its network of 13 parish offices.
REGISTERING UNDER THE SCHEME
Under the National Insurance Act, every person on attaining age 18 years is required to be registered under the National Insurance Scheme. The ministry maintains a permanent record for each person registered under the scheme. This is called a life record and comprises:
* The insured's national insurance number.
* The insured's name.
* The employer(s) name and reference number(s)
* The number of weeks worked.
* The joint employee/employer contributions.
The national insurance number is the means by which the ministry identifies each contributor.
Failure to register, registering more than once or registering with an incorrect name and incorrect year of birth could result in the loss of benefit or a portion thereof.
CATEGORIES OF INSURABLE PERSONS
All persons who are gainfully occupied in insurable employment are required to register under the NIS.
Males should be between the ages of 18 and 65 years and females between 18 and 60 years. If a man continues in insurable employment beyond age 65 and the woman after age 60, for the ensuing five years or any part thereof he/she must continue to contribute to the NIS.
Employed Persons
An employed person is an individual who works in a business that is not his/her own.
Included in this category are:
* Factory workers, gas station attendants, construction workers;
* Private household workers such as butlers, chauffeurs, cooks, gardeners, general helpers, housekeepers and nurse-maids (domestic);
* Members of the Jamaica Defence Force;
* All other employed persons including civil servants, teachers, nurses and members of the Jamaica Constabulary Force.
Self-employed Persons
A self-employed person is one who works in his/her own business.
Included in this category are:
* Barbers, hairdressers, cosmetologists
* Dressmakers
* Minibus operators, taxi operators
* Contractors, concessionaires
* Doctors, lawyers
* Freelance journalists, photographers, accountants
* Entertainers
* Tradesmen, artisans
* Fishermen, farmers
* Informal commercial
* importers (higglers)
* Jamaican nationals working in foreign embassies in Jamaica
Voluntary Contributors
A voluntary contributor is an individual under the NI retirement age, female 60 and male 65 who falls within one or more of the categories below:
* Has retired from full-time employment;
* Has relocated abroad for an indefinite period;
* Has become unemployed.
The person must also meet the following criteria:
* Has made a specified number of contributions (i.e. 52 weeks if ordinarily resident in Jamaica or 156 if residing abroad) as an employed or a self-employed person;
* Is no longer liable to contribute in either category;
* Wishes to continue contributing to maintain his/her contribution record;
* Has applied and has been granted permission by the Minister of Labour and Social Security to continue paying contributions, in order that he/she will qualify for a retirement pension on reaching age 60 (female) and age 65 (male).
A voluntary contributor to the NIS ceases to make contributions at age 60 for female and age 65 for male. The voluntary contributor is now eligible to apply for a retirement benefit.
WHY CONTRIBUTE TO THE NIS?
* It is a compulsory contributory social security system stipulated by the National Insurance Act and Regulations, 1965.
* The payment of contributions on a weekly, fortnightly, or monthly basis makes the contributor or his/her beneficiary eligible for benefits under the scheme, provided the relevant conditions are met.
* The total number of weekly contributions determines the level of benefits paid at retirement or during his/her lifetime.
