Bahamas Experience in Social Protection and Formalization Submitted - PDF document

Bahamas Experience in Social Protection and Formalization Submitted by Cecile S. Williams-Bethel Senior Deputy Director 3/13/2017 Social Protection and Formalization 1 Agenda Coverage of the Scheme Contribution Rates Administrative Procedures Incentives to Formalization Difficult-to-Cover Groups Examples 3/13/2017 Social Protection and Formalization 2

2015 Coverage •Employed Persons: 9.8% EE=3.9% ER= 5.9% •145,000 - EEs •13,472 - ERs Covered: •Self-employed Persons: 8.8% •10,339 •Voluntarily Insured : 5.0% •2 3/13/2017 Social Protection and Formalization 3 2015 Coverage Not •Non-Bahamians who do not Covered: have the right to work 3/13/2017 Social Protection and Formalization 4

S/E Rate and Ceiling Rate • 8.8% • $650 per week/$2,817 per month Ceiling • Adjusted every 2 years- RPI (2010) • Advise of income likely to make for the year Annual • Contributions paid on this income 3/13/2017 Social Protection and Formalization 5 Administered from 28 Locations on 15 Islands 3/13/2017 Social Protection and Formalization 6

3/13/2017 Social Protection and Formalization 7 Administrative Procedures • Several months at a time • By cash, cheque, direct deposit Can from bank account, credit card • New facility Pay • Employer Self-Service Portal • Complete entries on-line • Pay by credit card 3/13/2017 Social Protection and Formalization 8

Comparative 2015 Stats. NIB • Self-Employed – 10,339 Registrants • Self-Employed – 27,525 Dept. of • Informal – 10,585 (operating Statistics without a Business License) 3/13/2017 Social Protection and Formalization 9 Incentives • Short Term Entitlement • Esp. Injury on the job to Benefit – biggest • Long Term benefit • Esp. Retirement On time • No interest payments Tax • Letter of Good Standing Compliance • Only if contributions are paid up Certificates 3/13/2017 Social Protection and Formalization 10

Difficult-to-Cover Groups •Tuck shops •Street Vendors •Peanut vendors Who •Newspaper stands •Car Wash Operators •Tire Repair Shops •Etc. 3/13/2017 Social Protection and Formalization 11 Difficult-to-Cover Groups •No desire •Small income Why •Not steady •Assistance possible anyhow •Ad hoc lump sum payment Barriers •Less paper work 3/13/2017 Social Protection and Formalization 12

Examples • Wage bands and only Injury Benefit Past for some • Pay on ceiling, all at same rate and Now all covered for Injury Benefit • Pay lump sum • Simply form Proposed • Provide incentive to widen the base • Mobile paystation in New Providence 3/13/2017 Social Protection and Formalization 13 3/13/2017 Social Protection and Formalization 14