THE HOUSE OF ASSEMBLY has approved measures to bolster the Unemployment Fund over the next three years.
In an effort to get about $30 million to prop up the fund, Minister of Finance Chris Sinckler, who piloted an amendment to the Severance Payments Act on Tuesday night, said employers had agreed to increase their contributions from 0.75 per cent to 1.25 per cent – from January of this year to December 31, 2017 – while that of employees would remain at 0.7 per cent.
The move became necessary after the fund took a beating following a spike in unemployment, particularly last year, resulting in a deficit.
While it was taking in $2.5 million a month, it was paying out twice that amount which would have led to insolvency if there was no intervention, the minister explained.
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