An employee is a person who performs services under a contract of service or apprenticeship with an employer.
All Employees are required to register with the NIS and pay contributions. To register an employee must submit his or her certified birth certificate, a valid picture ID and all other relevant supporting documents where necessary (marriage certificate, deed poll, proof of citizenship, etc.). All employees should present their NIS card to their employer upon commencement of employment.
Employee contributions total 5.5% of gross earnings. The maximum amount on which contributions are payable is $5,000.00 per month, $1,160.00 per week. The Maximum 5.5% deductions for any given period is $275.00. Employers are required to pay 1% of gross earnings for employees under the age of 16 and over the age of 60.
The following are taken into consideration for the purpose or determining the earnings of an employee
- Overtime wages/payments
- Cost of living bonus
- Additional Payments in respect of dependants
- Supplements for long service in industry efficiency
- Commission on sales or similar payments
- Gratuities paid by employer
- Payment for night or shift work
- Service charges
- Any of an employee’s liabilities paid on behalf by the employer
- Holiday Pay
- Danger or dirt money or similar payments
The employee must present the following documents:
- An original certified birth certificate
- A valid picture ID
- An original certified marriage certificate (if applicable)
The normal age is 16-60. However all employed persons regardless of age must register (this includes temporary and part-time workers and students with summer or part-time jobs). The contribution rate for person below or above the normal age is 1%. It is paid by the employer only.
A total of 12% of insurable earnings should be made on behalf of each employee age 16 to 60; 5.5% should be deducted from the employee’s wages or salary and matched by 6.5% from the employer.
Employees under the age of 16 and over the age of 60, your employer contributes 1% of your gross earnings on your behalf.
In the case of self-employed contributors it is 12% of an agreed stipulated amount.
That is the maximum salary on which NIS contributions must be deducted. Currently it is $5,000 for monthly paid workers. This includes:
- Overtime payment;
- Cost of living bonus;
- Commission on sales or similar payments;
- Payments for night or shift-work
- Production bonus;
- Service charge
- Holiday pay etc.
Self-employed persons can qualify for all the benefits offered by the NIS.
Under the CARICOM Reciprocal Agreement on Social Security, if a person works in more than one member country and paid sufficient contributions in each country to qualify for a pension then, each country is required to pay him a separate pension based on its local Regulations. However, if he did not pay sufficient contributions to qualify for a pension in each country, the contributions paid in each member country is combined to assist him/her in meeting the qualifying conditions for such a pension. If upon combining his contributions he qualifies for such a pension, each member country where he worked is required to pay a proportional amount of the pension payable. Grenada is a party to the CARICOM Reciprocal Agreement on Social Security,
Grenada also has a Reciprocal arrangement with the Canadian Social Security.
The NIS encourages all contributors to create their NIS Web Portal account on my.nisgrenada.org and login to find out whether their contributions are actually being paid and that all other personal information are in order.
There are penalties for employers who fail to pay contributions to the N.I.S. The first step is that a surcharge of 10% of the contributions due and unpaid for the month and interest of 1% for every month that the amount remains outstanding. Employers can also be prosecuted in the courts for the unpaid contributions as well as for non-submission of NIS remittances.
Every employee/self-employed person in Grenada, Carriacou and Petite Martinique (including non-nationals) must register with the NIS, and must pay contributions.