SSB Reviews Plan That Could Change Your Pay Cheque Deductions

After a series of nationwide consultations with government, unions, employers and workers, the Social Security Board (SSB) is now reviewing a major proposal that could change how contributions are calculated.

Right now, Belize uses a wage-band system, meaning workers are placed into one of 13 contribution categories depending on how much they earn. But the Board is proposing to move away from that system and instead calculate contributions as a percentage of income, a move they say would make the system simpler and more efficient.

Another key change under consideration is raising the minimum amount used to calculate contributions, known as the contribution floor, from $55 to $130. That figure has remained unchanged since 2001.

SSB CEO Jerome Palma says while a fully simplified system would be easier to manage, the feedback from the public has pushed them to reconsider a one-size-fits-all approach.

He explained that while an initial idea was a single flat rate across all incomes, consultations showed concern that lower-income workers could end up paying more than they currently do.

After hearing from more than 1,000 participants, the Board says there is now strong support for a system with at least three tiers so that lower, middle, and higher income earners are treated differently.

The Board will now refine the proposal and return for another round of consultations later this year.