A pension is a regular amount of money that a person receives from the government, dependant on their circumstances.
The National Insurance Pension was introduced in 1966 and the first pension was paid out in March 1969. Though rates have changed, the principal is the same today.
People within the workforce, employed or self-employed, pay weekly contributions into a National Insurance Scheme (NIS), which is compulsory. NIS Contributions go towards several themes, including pensions.
There are several pensions available, see table below for rates. To qualify for a pension pertaining to Old Age, Invalidity, Widow's /Widower's, Orphan's and Special Child, weekly contributions must have been paid for 156 weeks.
|Effective from||Full Basic Weekly Hours (39 & over yearly average)||¾ Basic Weekly(26 - 38 hours)||½ Basic Weekly(13 - 25 hours)|
|13 January 2013||$2,800.00||$2,100.00||$1,400.00|
|Category of Pension||Weekly Rate from 10 January 2013|
|Dependent Spouse's Allowance (addition to Old Age and Invalidity)||$900.00|
|Employment Injury Benefit and Disablement Pension||$320.00 - $3,200.00|
|Maternity Allowance (8 weeks payable to domestic workers only)||$5000.00 Tied to National Minimum Wage|
|Orphan/Special Child Allowance||$4,900.00|
|Special Anniversary Pension, for persons born 1908 and earlier||$1,400.00|
|Sugar Worker's Pension||$1,400.00|
|Grant Category||Effective from 10 January 2013|
|Old Age Grant||$50,000.00|
|Orphan's/Special Child's Grant||$55,000.00|
Calculating Pension Contributions has never been easier, simply enter your income and other income(s) into the Jamaica Tax Calculator. The tax calculator will work out the taxes due and provides example calculations so you can understand how your Pension Contributions are calculated.