A New Tier In Relation to Payment of Levy
The St. Christopher and Nevis Social Security Board wishes to advise all employers and employees of the implementation of a new tier in the structure of Housing and Social Development Levy, effective January 2006. This change is in accordance with the provisions of the 2006 Budget Address presented by the Minister of Finance.
There is no change in relation to the Severance Payment Contribution.
The Comptroller of Inland Revenue has provided details as follows:
|
Employer’s Contribution
|
Employed Person’s Contribution
|
Total Levy Contribution
|
|
| Earnings of less than $1000per month |
3%
|
Nil
|
3% of wages
|
| Earnings from 1,000.00 to 6,500.00 |
3%
|
3%
|
6% of wages
|
| Earnings from 6,500.01 to 8,000.00 |
3%
|
8%
|
11% of wages
|
| Earnings equal to or greater than 8,000.01 |
3%
|
10%
|
13% of wages
|
| Severance Payment (all wages/salaries) |
1%
|
Nil
|
1% of wages
|
It is important to note:
In relation to earnings between $6.500.01 and $8,000.00 per month, the employee will contribute to the Levy at the rate of 8% on that portion of wages, and
In relation to earnings above $8,000.00 per month, the employee will contribute to the Levy at the rate of 10% on that portion of earnings
For further clarification regarding the changes or regarding any other matters, kindly contact your nearest Social Security Office.
