2019 Contribution Reform

What is the Contribution Reform?

The Contribution Reform refers to the changes being made to the Social Security legislation as it relates to the payment of contributions by both the employer and the employee who works for 8 hours or more in any given week.

Since 2003, the existing contributions schedule has remained the same. Over the last 2 years, SSB conducted consultations all over the country talking to persons in the private sector, in the government of Belize and the unions to impress on the need to increase the contributions for the sustainability of the fund.

After extensive consultations with the social partners and key stakeholders including the National Trade Union Congress of Belize, Belize Chamber of Commerce and Industry, Belize Business Bureau, and other representative groups, the Cabinet approved a phased in approach as proposed by SSB and the social partners.

When will these changes come into effect?

The increase in contributions translates to an increase in Benefits for all persons in the new wage ceiling. The table below reflects the approved increase in the contribution rate as well as the increase in the wage ceiling:

Tables: Contribution and Benefits Schedules 

The changes were scheduled to occur over a 3-year period; the first set of changes occurred on July 1, 2019 where the contribution rate increased by 0.5% from 8% to 8.5% and the wage ceiling increased from $320 to $440.

On January 6, 2020, the contribution rate increased from 8.5% to 9% and the ceiling increased from $440 to $480 and remained at the same rate in 2021 and the first quarter of 2022.

The final phase of contribution increase from 9% to 10% previously scheduled for January 4, 2021 was deferred for one year as per SI No. 184 of 2020. On December 14, 2021, based on approval by Cabinet, it was announced to become effective Monday, April 4, 2022.

Corresponding Statutory Instruments:

SI NO. 41 of 2019

SI NO. 184 of 2020