Long- and short-term benefits

Long term benefits

Old age pension

In order to receive a pension, employed persons must have at least 156 months of contribution and beat least sixty-two years old. The insured person receives a pension equivalent to 40% of his or her average pensionable earnings in the best three years of the last 13 years plus 0.1% for each month in excess of 156 months. Persons who have contributed during less than 156 months are eligible for old-age grants.

Disability pension

The following are necessary conditions for eligibility for a disability pension:

• Having a disability that is not the result of a work-related injury
• Having contributed for at least 60 months, 36 of which must be in the 72 months immediately preceding the month where the person became disabled;
• Being younger than the retirement age;
• Not receiving sickness benefit.

The rate of disability pension for insured persons who have contributed for at least 60 months but less than 120 months is 35% of the average pensionable earnings. For persons who have contributed for 120 months or more, the rate of the disability pension is 40% of the average pensionable earnings in the best three years of the last ten plus 0.1% for each month of contributing in excess of 120 months. The disability pension is paid as long as the person remains disabled or until retirement age, when the benefit is transferred to a retirement pension.

Survivors pension

Widows of 55 years or more are entitled to a pension for life, but forfeit that benefit if they remarry or cohabit with a man as his wife. Widows under age 55 at the time of their husbands’ death with no dependent children are entitled to pension for one year. Widows with children of the deceased under sixteen years in their care continue to receive pension until the children are 16, or 18 if still at school, provided that the widow does not remarry or cohabit. In this case the widows forfeit their right to benefits, but the children continue to receive theirs. Widows or widowers without dependent children receive 75% of the deceased’s pension entitlement. Widows or widowers with dependent children receive 50% and the children receive the remaining 50%.

In cases where the deceased did not have a spouse or children who claim a benefit, a parent or a grandparent of the deceased who is permanently incapable of self-support and was being wholly or partially maintained by the deceased is entitled to the survivors benefit.

Short term benefits 

Maternity benefit

Women qualify for a maternity allowance if they were in insurable employment prior to the claim for maternity allowance and have contributed for at least seven months in the ten months immediately preceding the month of expected confinement. A maternity allowance is paid at a rate of 65% of the average insurable earnings for the best seven months in the last ten months of contributions, for a maximum of 3 months. It can commence before or after delivery, but one of the months must be the month of delivery. Should an employee resume work before the expiration of the three months, the benefit will cease on the last day of maternity leave. A maternity grant is a lump sum of $600. Eligibility requires contribution by the woman or her husband/common-law husband to the National Insurance for seven consecutive months immediately preceding the month of delivery. Common-law union must have existed for 5 years.

Sickness benefit

Insured persons are entitled to sickness benefit if they have contributed during at least six months since registering with the programme. Sickness benefit is payable for a maximum of 26 weeks. After this period, the insured persons may be entitled to a disability benefit. The rate of sickness benefit is 65% of the average insurable earnings, of the best two in the four months’ contributions immediately prior to the month of sick leave.

Employment injury

Conditions for eligibility include insurable employment and an injury that is a result of this employment. No previous contributions are required. An employment injury benefit is paid for a maximum of 52 weeks at the rate of 65% of the insured person’s insurable earnings in the month of the injury. National Insurance refunds medical expenses incurred as a result of the accident, up to a limit of $20,000.

Funeral grant

A cash payment of $1750 is payable on behalf of a deceased insured person to his or her family. This grant is only paid if the deceased person has satisfied the qualifying conditions: Paid at least six months contributions in the twelve months preceding his/her death and has paid contributions equivalent to the amount of the funeral grant.

Social security schemes and programs by branch