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OPM brings clarity to NIB single rate increase of 1.5% shared between worker and employers

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STATEMENT: In a recent update from the Office of the Prime Minister (OPM), the government clarified earlier statements made by Minister Alfred Sears regarding the National Insurance Board (NIB) rates. Contrary to previous announcements, the OPM confirmed that there will be only one rate increase of 1.5% in July 2024, which will be equally shared between employers and employees.

This decision comes after a review of the NIB, which plays a crucial role in providing social security benefits like sickness, maternity, and unemployment assistance to Bahamians. It’s a safety net that was especially valuable during Hurricane Dorian and the COVID pandemic.

The government acknowledged the importance of NIB and the need for reform to improve its services, cut down on fraud, and ensure its sustainability for future generations. While an Actuarial Review suggested increasing rates every two years to keep the NIB financially healthy, the OPM has decided to pause and assess the impact of the July increase before making any further decisions.

This move is part of a broader effort to manage the cost of living and consider the best interests of the Bahamian people amidst global inflation challenges. The government’s goal is to strengthen NIB while being mindful of the economic pressures on its citizens.

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