The Barbados government announced that from 1 January 2025, the maximum insurable earnings ceiling for National Insurance [“NI”, Social Security equivalent] is B$1,219 (approx. US$610) for weekly paid workers and B$5,280 (US$2,640) for monthly paid workers.1
All employed individuals between age 16 and 65 must contribute to NIS.
According to Barbados law, employers are responsible for the correct payment and calculation of NI contributions if they employ staff who are subject to Barbados social security legislation. This applies to both Barbados and foreign employers. In case NI contributions are paid incorrectly or not on time, late payment penalties might be due. The existence of social security agreements will impact the imposition of Barbados (and/or foreign country) social security on Barbados inbound and outbound globally-mobile employees.
There are social security agreements with Canada, Quebec, the United Kingdom, and CARICOM (includes Antigua and Barbuda, Barbados, Belize, Dominica, Jamaica, St. Lucia, Trinidad and Tobago, Guyana, St. Kitts and Nevis, Grenada, St. Vincent and the Grenadines, Bahamas, Montserrat, Suriname, Haiti).
Any questions about the application of the increased wage thresholds and whether NI rates apply to employees' income and processes around payment/remittance of NI contributions to the authorities, it is advisable to contact your usual tax and social security professional or a member of the GMS/tax team with KPMG in Barbados (see the Contacts section).
1 For additional information see, National Insurance and Social Security Service: https://www.nis.gov.bb/contribution-rates/
Also, readers with access to Facebook may check for updates on the National Insurance and Social Security Service Facebook page: https://www.facebook.com/nisbarbadosbb/photos/attentionself-employed-personsthe-national-insurance-and-social-security-service/910534541264648/?_rdr
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B$1 = €0.48
B$1 = US$0.50
B$1 = £0.40
B$1 = C$0.72
Source: www.xe.com
The information contained in this newsletter was submitted by the KPMG International member firm in Barbados.
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