by Linda Straker
- National Insurance Scheme Unemployment Benefit came into force 1 May 2023
- NIS has since paid out EC$367,780 to 204 qualified workers
- Unemployment Benefit provides unemployed individuals with 50% of their insurable income
Labour Minister Claudette Joseph disclosed that since the National Insurance Scheme (NIS) introduced unemployment benefits in May 2023, the total payout to 204 qualified workers was EC$367,780.
“On 1 May 2023 the National Insurance Scheme Unemployment Benefit came into force. This benefit for the first time implemented in this country is paid to registered contributors who are unemployed, or self-employed and who would have lost their jobs through no fault of their own,” Joseph said, speaking at the 2024 Labour Day celebrations.
Held in St Patrick and organised by the Grenada Trades Union Council (GTUC), the annual May Day celebrations bring together workers representing all trade unions in Grenada to commemorate and celebrate International Workers Day. The highlight is a parade and speeches from the Minister for Labour and the various union leaders along with other invited guests.
The 2024 celebration was held under the theme “Recognising labour contribution to nation building over the past 50 years, as we move forward with renewed vision and purpose.”
This Unemployment Benefit provides unemployed individuals with 50% of their insurable income, can be claimed up to 15 days after the loss of employment, and continues for a maximum of 13 weeks, or 3 months.
Workers in the private sector, public sector, statutory bodies, work permit holders, and the self-employed are eligible for this benefit. This Unemployment Benefit will be funded with a contribution rate of 1% shared equally between employee and employer.
“This means that the NIS contribution rate will be 6.5% for employers and 5.5% for employees, bringing the total to 12% effective 1 February 2023. While many are eligible for this benefit, some conditions must be met to qualify,” said the NIS news release dated 1 March 2023 which informed workers about the new benefit.
According to the regulations for this benefit, the individual must have been an insured employee at the time of loss of employment, paid at least 52 weeks of contributions and must also be under the pensionable age. Additionally, the individual must not be at fault for the loss of their employment.
“Someone who has voluntarily left their job or was terminated due to theft, fraud or dishonesty will be disqualified from receiving this benefit. For the NIS to verify the cause for loss of employment, the employer must provide the individual with a termination certificate,” the release said.