By Elvin Bailey

IN July 1996, Social Security coverage for the self employed was introduced. This was the final step in providing social insurance for all workers in the country, and marked the end of exclusion for entrepreneurs, employers and the risk takers amongst us.

In that first six months of operation, our records show that 327 persons registered and ‘saved’ a total of EC$161,657.00, of which EC$6,350.00 was collected in July. In that year, only six persons – 4 women and 2 men - paid for the entire half year. Three of them have already ‘graduated’, one with an age grant and two with age pensions for a total payment so far of just over EC$16,000.00. By year end 2006, the Self Employed section of our operations had generated EC$6,927,426.00; and had paid out at least EC$1,620,150 in benefits of all kinds. (Payment for the 1st 4 years was unavailable for this publication).

Of these benefits, approximately EC$500,000 was for short term benefits (sickness, maternity and so on), and just over EC$1,000,000 was for age grants and pensions. Up to December 2008, there are at least 20 persons who have used Self Employment coverage to qualify for age pension, and four of them were fully qualified under the programme.  There were invalidity pensioners and survivor pensioners. Thus, self employed persons have been using most of the benefit types available to them (at least 10 of the 17).

In the early years, the top 5 areas of self employed registration were Retail trades or small shops (30%), Construction (23%), Manufacturing (13%), Transportation - that is taxi, bus and truck operators (8%) and Restaurants (7%). Today, the top employment areas are Retail trades and Transportation (19% each), Construction (18%), Other Community Social & Personal Services (12%) and Real Estate and Renting (9%). Manufacturing (including furniture makers) has faded out of the top businesses.

In absolute numbers, there are 3 times as many entrepreneurs in the transportation sector today, and twice as many real estate businesses.  Social and Personal Services has grown to 5 times what it was in the early years. Thus, today’s entrepreneur is more likely to be male, aged 30–34 years, engaged in construction, the retail trades, manufacturing or transportation; either as a sole activity or in combination of endeavours. Also, of all the monies collected from the Self employed, most of it, usually around 23-25% comes from Construction. These statistics suggest that the nature of work in St Kitts and Nevis is changing and that a different set of opportunities is emerging that we must prepare ourselves for.

After 13 years, we have also established that only one in every three self employed person is covered. This means that 67% of them are delinquent. Social Security has the legal authority to pursue these non-reporting self employed persons in the Court of law; but it is a step that has not yet been invoked. We prefer moral suasion using information such as what we have presented in this article. Self employed persons who are not covered are excluding themselves from a good thing.

One group that is grossly under-represented in our family is farmers. Therefore, when the
Caribbean Food Crops Society held its annual meeting in St Kitts in July, we used that platform to present the opportunity to invite them to join the movement. There are only 108 farmers registered with Social Security. This sector deposited less than EC$45,000 with us as contributions to be managed towards the standard benefits package. 

Farmers in St Kitts-Nevis reflect the national and international phenomenon of aging.    The single largest age group is those 50–54 years old, and nobody 16–19 years old is registered as a farmer. Indeed of the 108 persons registered with us, 53 are between the ages of 45–59 years old and only 30 are younger than 45 years. By comparison, the age distribution for the rest of us shows the largest age cohort is aged 20–24 years. That is a 30 year difference! Age, and the risks associated with the farming sector should motivate farmers to cover themselves with social security.

The professionals – lawyers, accountants, doctors, architects, engineers, athletes and sportspersons are also under-represented. Of the 1,328 persons who came on board between 2000 and 2008, only 7% are from this grouping. A special invitation is hereby offered to them.
 
St Kitts & Nevis is one of the few CARICOM countries that has Self Eemployed Coverage. Therefore, others are looking to us for answers and for leadership. Our experience has been shared on a global scale last year in Bermuda; and this year we have been asked by a much larger country in the Southern Caribbean to help guide them by sharing our experience with them in greater detail.

We have become leaders. Let us lead by example!