BELIZE CITY, Thurs. Mar. 10, 2022– In less than a month, the Social Security Board (SSB) will implement the final increase to the rate of contribution that must be paid into the pension scheme, which is the last stage of a reform process which began in January of 2020, but was delayed a number of times due to the COVID-19 pandemic and its impact on the overall economy and the livelihood of a large number of citizens. Cabinet had opted to defer the final increase that had been scheduled to take effect on January 4, 2021. The rate of contribution will now finally increase from the current rate (9%) to 10%, starting April 4, 2022.

“The final phase of contribution increases from 9% to 10% previously set 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!” a release from the SSB states.

Along with the upping of the contribution rate to 10%, the ceiling for weekly earnings to be covered by the scheme will also be lifted to $520 — with the employer covering 5.50% and the employee 4.50%.

The new contribution rate is expected to remain in place for the foreseeable future, or until the SSB determines that an update is needed to adequately sustain the fund. From 2003 to 2019, a contribution rate of 8% was in place before a 0.5% increase in the rate of contribution was effected in July 2019 and the insurable wage ceiling was raised to $440.

The release from SSB states, “The increase in contributions translates to an increase in benefits for all persons in the new wage ceiling.”