The National Insurance and Social Security (Amendment) Bill 2009, passed without objection, also increases penalties for late payments or non compliance, which have been persistent problems for the scheme.
Finance Minister Dr Ashni Singh piloted the bill through its final stages and he told the Assembly that he had no doubt that its provisions would be welcomed by both employees and employers. Only AFC MPs and the lone GAP-ROAR MP were present for the opposition after members of the main opposition party PNCR-1G absented themselves.
The bill amends the National Insurance and Social Security Act (Chapter 36:01). It would incorporate a new Section in the principal legislation to require the NIS General Manager to submit records of contributions, to be known as “annual contribution statements,” to employees.
The new Section will also require the General Manager to provide to employers annual compliance reports of contributions on behalf of employees.
Singh noted that there have been complaints by employees about the accuracy of contributions, which is one of the immediate issues the new law attempts to address. He said that the law would enable employees to receive annual statements and allow corrective action to be taken where inaccuracies are found.
Additionally, the bill also amends penalties under Section 41 of the Principal Act, which deals with late and defaulting payments by employers. It increases the fine from three thousand dollars to one percent greater than the rate charged by commercial banks on overdrafts in respect of contributions not submitted. Further, it increases the fines for the obstruction of NIS inspectors from three thousand dollars to thirty thousand dollars, and the fines for repeat offences, which move from fifteen thousand dollars to fifty thousand dollars. The fine for employers who attempt to recover contributions through deductions from workers will also be increased from six thousand dollars to seventy-five thousand dollars. Also, anyone who knowingly makes any false statement or representation under the Act would be liable to a fine of one hundred thousand dollars -up from sixty-five thousand dollars.
Meanwhile, the bill also inserts a new Section 55, which provides for every employer or self-employed person who tenders for a government contract to submit a certificate of compliance in respect of employers that shows compliance with the collection and payment of contributions, in keeping with the law. The provision is pursuant to Section 5(1) of the 2003 Procurement Act.
In addition to Singh, Labour Minister Manzoor Nadir also spoke on the bill.
