A major change is coming for workers and employers.
From next Monday, January 5th, the National Insurance Board (NIB) will implement a significant increase in contribution rates in a move aimed at securing the future of the country’s social security system.
The adjustment pushes the total contribution rate from 13.2% to 16.2%.
Under the new 16-class system, employers will pay two-thirds of the cost, while employees will cover one-third.
For a mid-range earner in Class Eight making between $5,633 and $6,456 a month, the weekly contribution will be $225.90, with $75.30 deducted from wages.
At the top tier, those earning over $13,600 monthly will contribute $508.50 per week.
The National Insurance Board says the increase is essential for the long-term sustainability of benefits like pensions, maternity grants, and sickness coverage.
This is the first step in a multiyear plan. Another increase is scheduled for January 2027, raising the rate to 19.2%.
Employers are being urged to update payroll systems immediately to avoid penalties.