President Dr Irfaan Ali today announced a one-off payment for National Insurance Scheme (NIS) contributors who did not meet the required number of contributions to qualify for an NIS pension.
The initiative, which totals over $10 billion, will benefit individuals who are 60 years and older by 31 December 2024 and who have made between 500 and 749 contributions. The implementation process is expected to begin on Friday, through the NIS office.
Payouts will be made in four categories based on the number of contributions. Individuals with 500 to 549 contributions will receive a one-time payment of $260,000; those with 550 to 599 contributions will receive $390,000; individuals with 600 to 699 contributions will receive $520,000; and those with 700 to 749 contributions will receive $650,000.
This measure was previously announced during the 2025 National Budget presentation, where the government indicated that $10 billion would be allocated to the NIS to support Guyana’s elderly—especially those who had not made the minimum required contributions for a pension.
During the announcement, President Ali stated that this initiative is part of the government’s commitment to ensuring the wellbeing of the elderly population.
He described it as a fair and compassionate response to the reality faced by many seniors who, despite dedicating much of their lives to national service and making contributions to the NIS, missed the pension threshold by a narrow margin.
He emphasised that although this was not a campaign promise, his administration recognised the need and responded to the voices of the people.
The NIS extends social insurance coverage on a compulsory basis to all individuals aged 16 to 60 who are engaged in insurable employment. Voluntary coverage is also available to individuals who leave such employment before reaching the age of 60, allowing them to continue contributing until they qualify for benefits.
People employed outside this age range are covered only for industrial benefits, and self-employed contributors are not eligible for those benefits.
Under the Scheme, both employer and employee contribute a total of 14 per cent of the employee’s actual wage or salary. This includes a 5.6 per cent deduction from the employee’s pay and an 8.4 per cent contribution from the employer.
Currently, the contribution ceiling is set at $280,000 per month or $64,615 per week. Self-employed individuals contribute 12.5 per cent of their declared income, while voluntary contributors pay 9.3 per cent of their insurable earnings, based on the average from their last two years of employment.
