Permanent residency applicants’ salaries counted in different ways
The Cayman Islands newly-proposed system of granting permanent residence to non-Caymanian workers will end up counting applicants’ salaries in three, or possibly four, different ways, effectively penalizing applicants for having non-Caymanian dependent children with them in the islands.
In one case, the applicant’s monthly salary will be counted when calculating his or her total investment within the Cayman Islands.
In a second instance, the applicant’s annual salary will be counted as it is when the new permanent residency points system calculates the person’s “financial stability” – unless that person supports dependents or has a spouse earning additional income.
And in yet a third instance, the applicant’s aggregate annual salary will be counted over a five-year period when calculating the cash deposits they hold in a local financial institution.
The government calculations use algebraic formulas to determine a person’s investment in the islands relative to their salary. However, that salary can suddenly become different when the person’s “financial stability” is calculated.
For example, individuals making $6,000 a month [$72,000 a year] would count their total investment against the $6,000 per month figure. When plugged into the government’s formula for total investment, that monthly salary divides into the total investment amount for the applicant. Basically, the higher the applicant’s monthly salary relative to the level of his or her investment, the fewer points would be received toward permanent residence.
That same applicant’s annual salary of $72,000 would be used to calculate financial stability on the permanent residency application. If that applicant maintained two dependents [a spouse and child], he or she would have a total of $24,000 or $27,000 [if the child was in school] subtracted from the annual salary – giving the applicant an actual annual salary of $48,000 to $45,000 when calculating financial stability.
However, that lower salary of $48,000, which provides a monthly income of $4,000, would not be used in the calculation for total investment, where a lower earning level actually benefits the applicant.
Conversely, an applicant with a working spouse and a dependent would be eligible to add the spouse’s earnings to his or her own on the financial stability portion of the permanent residency application. So, the same person making $72,000 per year – minus $12,000 for the child-dependant – and a spouse that earns $40,000 per year, would be considered to be earning $100,000 per year.
Again that $100,000 per year salary, roughly $8,333 per month, would not be used in the calculation of total investment in the islands, where it would adversely affect the applicant’s chances of earning points toward permanent residence.
A third way of evaluating a person’s cash and savings held locally uses an applicant’s salary to determine a percentage that awards points on the permanent residence scale. The higher the percentage of savings maintained to salary earned over five years, the greater the number points the applicant earns.
However, that salary amount – aggregated over five years – would again be different from any calculations used to determine “financial stability”, as a person’s income may have changed over the period. Also, a lower salary based on subtractions for dependents – that would again assist an applicant in the permanent residency point system – is disregarded, while a higher salary based on spousal earnings that would penalize them in the area of cash deposits is also not considered.