The employee and employer are required to make basic contributions that, when combined, equal 10% of the employee’s “earnings” (up to the year’s maximum pensionable earnings of CI$60,000 a year). Once the employee has reached the earnings cap of CI$60,000 then contributions can stop until the following calendar year.

The employer’s share must equal at least 5% of the employee’s earnings; however, the employer’s share can be higher. If the employer contributes more than 5%, the employee’s share can be reduced accordingly. (The employee cannot be asked to contribute more than 5% of earnings.)

Contributions should be made on a monthly basis and sent to Silver Thatch Pensions within 15 days of the end of the pay period.

Earnings

Earnings include any wages, salary, leave pay, fees, commissions, bonus (to the extent that it is more than 20% of the employee’s basic wage or salary), and employer-paid gratuities. Earnings do not include severance payments, retirement or long-service recognition payments, or health insurance premiums.

If you are self-employed

You will need to calculate the contributions yourself and remit both the employee and employer share of the contributions. A total of 10% of your earnings.