The payment of National Insurance contributions is compulsory

for employees and unpaid apprentices who are registered or WHO PAYS NIS CONTRIBUTIONS?
eligible to be registered under the system.

What Are Contributions?

Every person or entity that
A contribution is a weekly payment fixed in relation to the employs at least one other
wages/salaries of the insured person. Salaries and wages are struc- person and pays that person at
least $120.00 per week; or
tured into 16 earnings classes each of which carries an assumed employs unpaid apprentices must
average weekly earning. be registered as an Employer
I EMPLOY ONE PERSON within 14 days of employing his
first employee/unpaid appren-
With effect from January 7th 2008 to date, Contribution Rates were AND MORE tice.
increased from 9.9 % to 11.4 % of the assumed average weekly
earnings and the income ceiling of $4,377.00 per month was
increased to $8,300.00 per month to ensure adequate protection is
provided on an employee’s earnings.
At the end of the three year period, the overall rate of contributions
would have increased by 1.5 percent. The objective of the phased
increase is to soften the impact on employers who pay two-thirds of
the contribution and the employee who pays the other one third.
I EARN $120.00 Any employee who earns $120.00
or more per week is required to
OR MORE PER WEEK be registered.

Who Pays Contributions?

Payment of the contribution is shared between the employer and

employee in the ratio of approximately 2:1 in accordance with the
rate set out in the NI Act. The employer is statutorily obligated to Anyone employed in a profes-
sional capacity on a full-time
deduct the employee’s share no later than on the date of payment basis, for which a salary is paid.
of salaries/wages. This includes a Doctor at a Hospi-
I AM EMPLOYED ON tal, a Priest, Pastor, Nun or
domestic who receives a salary of
Not withstanding the cost sharing described, the EMPLOYER is A FULL-TIME BASIS $120.00 per week or more.
responsible for remitting the total contribution to the NIBTT.
Any employer who fails to pay any contributions, or deducts part of
the employer’s contribution from the employee’s wages, or contra-
venes any other requirement of the law, commits an offence and
can be prosecuted and fined. Contravention of this requirement
may attract a fine of $4000.00 and 6 months imprisonment upon
summary conviction. Insurance Agents or Car Salesmen
I AM EMPLOYED FULL who work on a full time basis and
In addition, the employer is obligated to maintain pay records for TIME AND RECEIVE A are paid by commission on sales
each of his employees including the unpaid apprentice and domes- COMMISSION $120.00 per week or more.
tic.

Residents Working Abroad

If you have an employee who is in insurable employment, and that

employee is required to work abroad for you, then, providing that: Anyone employed temporarily
with a Firm, Business Organiza-
The employee is ordinarily resident in Trinidad and Tobago; and you tion, Government Department or
maintain a place of business in Trinidad and Tobago, contributions I AM A TEMPORARY Statutory Body (e.g. a student
during vacation periods $120.00
must be paid for the employee at the normal rates during the EMPLOYEE per week or more).
period that he/she is working abroad.

Exceptions
Foreign employees engaged in
The following are instances in which no deductions are made from work in Trinidad & Tobago on a
the employees wages/salaries and in which only the employer pays contract basis, or on work
a contribution: permits or who has not been
I AM A FOREIGNER granted exception under a recip-
EMPLOYED IN TRINIDAD rocal agreement or is exempt by
- Employees under 16 and age 65 years and over. AND TOBAGO international conventions.
- Employees aged 60 years to under 65 years who have retired,
and have started to receive their Retirement Benefit and
subsequently returned to work.

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