Changes in Housing and Social Development Levy: Tiers remain the same

St. Kitts, Jan 11, 2011 – The Social Security Board wishes to update all employers and employees on matters regarding the Housing and Social Development Levy.

The changes emanating from the recent Budget session in the National Assembly relate only to the percentages that apply to tiers two, three and four as follows:
• Those employees who were paying 3% will now pay 3.5% on their total earnings up to $6,500.00 per month
• Those employees who were paying 8% on the portion of earnings above $6,500.00 up to $8,000.00 per month will now pay 10% on that portion
• Those employees who were paying 10% on the portion of earnings above $8,000.00 per month will now pay 12% on that portion

Please note that there has been no change in the threshold below which employees are exempt. There is also no change in the tiers established for the payment of the levy. They remain as follows:

For Tier One (persons up to the Annual Threshold of $16,640.00 per annum):
• For persons who are weekly paid no Levy will be deductible from wages up to and including $320.00.
• For persons who are paid every 2 weeks, no Levy will be deductible from wages up to and including $640.00
• For persons receiving wages twice per month or every half month, no Levy will be deductible from wages up to and including $693.33
• For persons being paid on a monthly basis, no Levy will be deductible from wages up to and including $1,386.66

For Tier Two (persons crossing the threshold and earning up to and including $6,500.00 per month), Levy will be deductible at the new 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 new 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 new 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 onwards per month.