A self-employed contributor is someone who is not in the employment of a registered employer, but is otherwise gainfully employed.
All self-employed persons are required by law to be registered with the NIS and to pay contributions. The contributions rate for a self-employed person is 12.5% of gross earnings. Self-employed persons over the age of 65 are required to pay 1% of gross earnings for employment injury benefit. The maximum earnings on which contributions are payable is $5,200.00 per month.
Effective July 1, 2023, new Self-employed regulations were introduced. Under these regulations, Self-employed persons can:
Choose to pay monthly or in lump sums annually.
- Pay any amount between $840 or as much as $7,950 annually to qualify for all NIS benefits (including Sickness, Maternity, Unemployment and Employment Injury Benefits).
- To qualify for benefits the following year you it is mandatory to contribute in the current year (must contribute in 2024 to qualify for benefits in 2025).
- Enjoy the advantage of no penalties and interest for late payments.
- Make self-employed payments even when employed elsewhere. (provided that contribution payments amount to no more than $7,950 a year).
Self-employed persons must satisfy the following requirements:
To register as a self-employed person, visit any NIS office with the following documents: