Calls on self-employed persons to consider their future
BASSETERRE, St. Kitts - THE Government believes that it is time for self-employed persons to seriously consider their future regarding contributions to the Social Security Fund.
This call comes as Social Security continues to payout more than it has been receiving.
In his address to recognise the 25th Anniversary of the organisation, Minister with Responsibility for overseeing Social Security, Eugene Hamilton explained that there are 5,862 self-employed persons registered with Social Security across all sectors of employment.
Hamilton said that those insured persons are guaranteed pecuniary payments in times of need, such as during sickness, maternity, invalidity, survivors and age pensions, amongst others.
Highlighting the challenges the Social Security Fund is facing with regards to the self-employed, Hamilton disclosed that from 1996 to 2021, the entity collected $30.62 million in self-employed contributions.
He however noted that over the same period, $78.89 million was paid out in benefits to persons who have shared a combination of employee and self-employed contributions.
“In 2019 alone, such persons received $5.52 million in benefit payments”, the Minister added.
The Government has however found it challenging to have employers in the Federation pay over contributions to the fund.
“The scenario I just described is demonstrably unsustainable.....and the 70 percent non-compliant self-employed must be prepared to step to the plate and shoulder their responsibility in partnership and solidarity with the 30 percent compliant cohort...in solidarity with all of those other insured persons who are covered by their employers,” the Minister urged.
Data show that self-employed persons receive meaningful pay-outs in benefits and an average age pension of $1,101.00 per month as of December 2020.
According to the Minister, the self-employed sector is the fastest growing, as people are finding innovative means to provide for themselves; and many of them are in non-traditional informal work situations that pose serious challenges for securing their full participation in Social Security.
“Hence, while registration continues to grow steadily, compliance continues to hover around the 30-percentile tier as I have alluded to moments ago”, Hamilton said, noting that it is alarming.
“...I take this opportunity to implore the self-employed to consider their future, as with age or sickness the probability of loss of income is increased. You must be in it to benefit from the fund. Therefore, you must comply or be denied. This, of course, is not the stance we wish to take, and, as such, Social Security encourages the self-employed to take a keen interest in their social security status and maintain a healthy record,” Hamilton advised.
He also stated that the Government is cognisant of the current environment and that Social Security remains committed to keeping the self-employed engaged, adding that the Compliance Officers at Social Security are welcoming and ready to work on a plan that would help the self-employed navigate those difficult times.
“It is important to look ahead with hope for business continuity and, most importantly, a dignified end when one retires from active work. The guarantee of a monthly pension is worth the continued effort,” Minister Hamilton further advised.
