MANDEVILLE, Manchester — For many low-income Jamaicans, a pension through the National Insurance Scheme (NIS) may be their only means of sustaining themselves in retirement.

To ensure a pension and other benefits, the National Insurance Act, which came about in 1966, states that every individual working in Jamaica between 18- 65 must have an NIS number.

Two of the ways contributions to the NIS can be made are directly by self-employed persons or through an employer for those who work with an organisation.

Speaking at a recent town hall meeting organised by the Manchester Co-operative Credit Union, representative of the Ministry of Labour and Social Security, Alton Gregory, said that it is a total of five per cent of an employee’s gross income that goes to the National Insurance Scheme.

“It is the employers’ responsibility to ensure that your NIS contribution is deducted. Currently, it (the law) states that 2 ½ per cent of your gross income should be deducted by your employer and that 2 ½ per cent should be matched by the employer — a total of five per cent of your gross income up to a maximum of $1.5 million.That is the salary capping — $1.5million, no further NIS contribution can be taken. That is paid over to the National Insurance Scheme and it is invested in what is referred to as the National Insurance Fund,” he said.

Gregory told the meeting at the Mandeville Parish Church Hall that there are various investments including Government paper and real estate in which the fund managers place the contributions to carry out the functions of the National Insurance Scheme.

He said that employees have a duty to ensure that their contributions are being paid over consistently. For employees who do not get a “printout” of their salary and statutory deductions, he said, by law they can demand from their employers at the end of the year a P24 — a document outlining total earnings and the statutory contributions.

However, one guest at the function believes that despite the laws in place, low-income earners are often losing out on their NIS benefits because of dishonest employers who do not pay over the deductions to the Government and a system that is not working in their favour.

As a taxi operator since 1988, Kermit Johnson told the Jamaica Observer that he is privy to information about the hardships some people face in these instances.

He said that because of a fear of victimisation and losing their jobs some employees do not keep track of the contributions by their employers in order to secure the present earning, at the risk of no plans in place for the future.

“Who cares about 20 years in front … you care about tomorrow and now. When you don’t have a job now and you children fi go to school… you a go fret bout 20-30 year down the line?” Johnson asked as he tried to explain the rationale.

He said that he knows of cases wherein employees of the Ministry of Labour and Social Security call business owners to inform them when employees come to make inquiries, and that is among the reasons some dread taking the route of tracking what is happening to their contributions.

Johnson believes that only about “two out of a thousand” matters get before the court when employers do not pay over contributions because the affected persons do not have the funds and even the time to pursue the case, because they have to continue to find ways to make a living.

As it stands, he said the laws that govern the NIS is more in favour of business people and suggested that even persons employed to an organisation should have the option to make the contributions directly instead of depending on an employer, as over the years many employers have proven not to be reputable and employees do not have the backing of the law as they should.

“NIS people say you must sue them (employers) but wey you a go get money fi sue them? It is a sin fi see how Government treat poor people with business people — any Government (administration). Dem (Government) say dem love the poor, but they nuh love no poor,” lamented Jonhson.

He said that he has been fortunate to have reputable employers who handed over the contributions and he has continued the relationship with the NIS in his many years of being self-employed.

The former acting president of a taxi association in Manchester said that joining the Manchester Co-operative Credit Union is another way he tries to be financially prudent, but expressed dissatisfaction with how credit unions are being operated in recent times.

He said that in the past there were more benefits to the members but now, due to Bank of Jamaica regulations, they have to contend with high interest rates — which is another obstacle for low-income earners.

In addition to the presentation of the Ministry of Labour and Social Security, organisations such as the Social Development Commission and the Jamaica Constabulary Force also took part in the town hall meeting.

The organisers from the Manchester Co-operative Credit Union, under the leadership of retired educator now Anglican priest, Rev Charles Danvers, say that it was a way to look out for the economic and social well-being of residents. They provided information on their products and services and on financial literacy in general at the meeting.