–as gov’t clamps down on security firms

OVER $130 million in deductions have been paid to the National Insurance Scheme (NIS), as the government continues to investigate security firms that have failed to remit those funds.

People’s Progressive Party (PPP) General Secretary and Guyana’s Vice-President, Dr. Bharrat Jagdeo, last week revealed this at a news conference.

“I can say to the people in Region Two and Region Three, all of the thousands of people who were security guards in those two regions, maybe combined, nearly 1,700 who have not had their NIS paid for three years, that they are now fully paid,” Dr Jagdeo said.

According to the General Secretary, over $130 million was paid by two security companies to the NIS.

He further highlighted that inspections will continue, and if companies fail to meet their obligations, they will face dire consequences.
“Now, there are some other companies that we are targeting… and I made it clear [that] if they don’t pay all of the outstanding NIS, they are going to lose government contracts and also they are going to be handed over to the police,” Dr Jagdeo said.

He added: “We are not skimping on this effort to tackle all of these things.”
Dr Jagdeo told reporters that several citizens employed by various security companies across the country have complained that payments are being deducted from their salaries; however, their employers are not remitting these to NIS.

This was among several major concerns raised during a recent government outreach, he disclosed.

Attorney-General and Minister of Legal Affairs, Anil Nandlall, had recently issued a strong warning to employers, reminding them that it is a criminal offence to withhold NIS contributions from employees without remitting them.

Following a recent ruling by the local courts, the Attorney-General reminded business entities that while employers are allowed to make NIS deductions from their employees’ salaries, a failure to pay over those funds to the NIS constitutes a criminal offence.

Nandlall had raised this issue while addressing circulating reports regarding an appeal filed by the NIS against a High Court decision.
In that decision, High Court Judge Damone Younge ordered the NIS to pay a pension to Sharif Zainul, a former employee of Toolsie Persaud Limited (TPL).

Nandlall explained that the appeal was not initiated by the Attorney General’s Chambers but by the NIS itself, shedding light on critical aspects of the case.

Following a recent ruling by the local courts, the Attorney-General reminded that while employers are allowed to make NIS deductions from their employees’ salaries, a failure to pay over those funds to the NIS constitutes a criminal offence.

Nandlall had raised this issue while addressing circulating reports regarding an appeal filed by NIS against a High Court decision.
In that decision, High Court Judge, Damone Younge, ordered the NIS to pay a pension to Sharif Zainul, a former employee of Toolsie Persaud Limited (TPL).

Nandlall said that the appeal was not initiated by the Attorney General’s Chambers but by the NIS itself, shedding light on critical aspects of the case.

As such, the Attorney-General warned that deducting NIS payments from employees but failing to remit those payments to the NIS constitutes a criminal offence under the law.

NIS extends social insurance coverage on a compulsory basis to all persons between the ages of 16 and 60 years who are engaged in insurable employment.

According to the NIS’ website, both the employer and employee pay contributions into the scheme based on a “payroll system.”

The total contributiosn for employed contributors is 14 per cent of the actual wage/salary paid to the employee.

This is derived from a 5.6 per cent deduction from the employee’s pay, and the remaining 8.4 per cent paid by the employer on behalf of the employee.

The actual wage/salary is, at present, subjected to a ceiling of $280,000.00 per month or $64,615.00 per week for national insurance purposes.