Wednesday, April 17, 2024

Move to rebuild Unemployment Fund

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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.

Please read the full story in today’s Daily Nation, or in the eNATION edition.

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