Employers who deduct National Insurance Scheme contributions and do not pay into the scheme could face criminal proceedings. This is according to Minister of Finance Dr. Ashni Singh who warned employers against this action.
“Failure to pay over NIS deductions is a criminal offence. When you make NIS deductions, you are holding that money in trust. It is not your money. It is not for your cash flow purposes.” Dr. Singh noted.
According to Minister Singh, it is also imperative for the scheme to become more stringent with employers. He suggested an enforcement initiative, which could see many employers being held accountable for their illegal actions.
“We also need to get serious with enforcement against defaulters; people who have failed to pay… we need to get aggressive.” The Minister said.
According to the National Insurance Scheme, the total contribution for Employed Contributors is 14 percent of the actual Wage or Salary paid to the Employee.
This is derived from a 5.6 percent deduction from the Employee's pay, and the remaining 8.4 percent paid by the Employer on behalf of the Employee.
