Effective today, contributors to the Social Security fund will see an increase in their salary deductions. This is the second of three phases put forth by SSB to assist the fund which was reportedly in trouble up to mid-2019. All persons who pay social security will now pay an additional point five percent to the fund. For those making between three hundred to three hundred and forty dollars weekly, their contributions will go from ten dollars and fifteen cents to ten dollars and seventy-four cents. For those who earn between four hundred and twenty to four hundred and sixty dollars per week, their contributions will increase from fifteen dollars and sixty-eight cents to sixteen dollars and sixty cents weekly. Meanwhile those making over four hundred and sixty dollars per week will be obligated to pay eighteen dollars and seventy-eight cents each week; an increase of just over three dollars per week. The third and final phase of the SSB increase takes effect in June 2021; that increase will be by one percent. The official announcement of this increase came in June 2019, led by the CEO of SSB, Dr Colin Young. According to Young, the increases will also bring about an increase in the pension scheme.
Dr.Colin Young, CEO, Social Security Board: “The maximum pension rate is 60% of your salary that is calculated over your three best years of earnings. So what that essentially means is prior to July first the maximum weekly pension that we could have paid to somebody would have been $192 a week. After we get to 2021 the maximum will go up from $192 a week to $312 a week, that equates to about a $6,200 increase over a year. So if you retired before July first 2019 at the maximum rate your maximum pension would have been about $9,984. When you retire in the future now and you were paying at the higher rate your maximum pension will go to $312 a week which equates to about $16,200 a year.”
The next phase of the social security increase is slated for January 2021. It is to be noted that Dr Colin Young is no longer at the SSB as he chose not to renew his contract at the end of 2019.