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SSB Takes Bigger Bite Out of Paychecks

SSB Takes Bigger Bite Out of Paychecks
January 10
09:02 2020

SSB Takes Bigger Bite Out of Paychecks

Effective this week, on January 6th, the deductions from your salary, or your cash pan if you’re an employer, increased for Social Security contributions. This is the second of three tranches of increases that were discussed and approved over an 18 month period, starting July 1, 2019 by 8.5%; a .5% now, and another 1% in 2021. This will be an overall increase on every employee’s contribution by 10% over what they were paying prior to July, 2019.

Acting SSB CEO, Deborah Ruiz told the Reporter that SSB
had projected $81 Million in benefits expenditure for 2019
versus an estimated $90 Million in collections, including the
adjustments made last July. These figures will be confirmed
by next month when employers are scheduled to pay in their
employees’ contributions for January. She assured that the fund is performing as successfully as it was designed to do prior to the implementation of the increases.

In terms of administrative expenditure, Ruiz said that SSB hopes to reduce the figure from 20% to 16% by the end of 2021.

Social security benefits are dependent on what people pay in. There are around 110,000 insured persons registered with Social Security and the way it works is that people qualify for pension after they have made 500 contributions or roughly 10 years of contributions.

Ruiz welcomed queries from employees or employers to its Facebook page as well at their Communications Unit regarding their contributions.

Last year, SSB reported that all the insured persons who started to work in the early 1980s when Social Security first started, were just going on retirement, with between 1,000 to 1,300 persons retiring every year, either at the voluntary retirement age of 60 or at the mandatory age of 65.

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