Social Security Press Release
Having received appropriate notification regarding the recent change to the deduction threshold in respect of the Housing and Social Development Levy, the Social Security Board wishes to advise as to the way forward in dealing with this matter. The change has been brought about by way of the Housing and Social Development Levy (Amendment)
Act 2014 No. 16 of 2014 which provides for the upgrade of the threshold from $16,640.00 per annum to $18,720.00 per annum; and is effective from 1st November 2014. This impacts persons falling within the first
payment tier only; which is comprised of persons who are exempted from levy deductions.
In keeping with standard practice to date, the periodic payment threshold stipulations are now as follows:
• For persons who are weekly paid, no Levy will be deductible from wages up to and including $360.00
• For persons who are paid every two weeks, no Levy will be deductible from wages up to and including $720.00
• For persons receiving wages twice per month or every half month, no Levy will be deductible from wages up to and including
$780.00
• For persons being paid on a monthly basis, no Levy will be deductible from wages up to and including $1,560.00
All other stipulations pertaining to the other tiers remain as before.
For Tier Two (persons crossing the threshold and earning up to and including $6,500.00 per month), Levy will be deductible at the continuing rate of 3.5% of total earnings.
For Tier Three (persons earning between $6,500.01 and $8,000.00 per month) Levy will be deductible at the continuing rate of 3.5% from earnings up to $6,500.00 and 10% from that portion of earnings between $6,500.01 and $8,000.00 per month.
For Tier Four (persons earning from $8,000.01 upwards per month) Levy will be deductible at the continuing rate of 3.5% from earnings up to $6,500.00; 10% from that portion of earnings between $6,500.01 and $8,000.00; and 12% from that portion of earnings from $8,000.01 upwards per month.
It is important to repeat that the employer’s contribution on behalf of each employee is not affected by these changes. The employer’s portion of the Levy remains at 3% and is payable in respect of all wages paid.
N. B. This release supersedes any previous release pertaining to this matter.
The Board solicits the cooperation of all concerned as it seeks to continue the collection of the levy, while yet facilitating the desired relief being made available to persons of lower incomes. Interested persons are hereby encouraged to contact our offices in Basseterre and Charlestown for any clarification.