NIS & PAYE Rates for 2012: Increase to NIS Insurable Earnings Limit Effective January 2012

  • Monthly: $4,180 effective 1 January (was $4,090)
  • Weekly : $965 effective 3 January (was $944)

With compliments from The Business and Employment Centre - keeping you informed!

There is no change in the contribution rates of 10.1% for employee and 11.25% for the employer. For Self-Employed persons, the rate is 16.1%.

NO CHANGE in PAYE Rates

Basic allowance remains at $25,000 ($2,083 monthly or $480 weekly)
Taxable earnings above $25,000 and up to $49,200 p.a. @ 20%
Taxable earnings above $49,200 p.a. @ 35%
(Tax payable on Travel & Entertainment)

Example for annual salary of $60,000 ($5,000 monthly)

First $25,000 @ zero = NIL
Next $24,200 @ 20% = $4,840
Next $10,800 @ 35% = $3,780

Gross Salary = $5,000.00 less:
Total PAYE $8,620 p.a. = $718.33 per month
NIS on $4,180 @10.1% = $422.18 per month
Net Monthly Pay = $3,859.49 ($9.09 less than last year)

(Employer’s NIS @ 11.25%= $460.13)

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