The national pension holiday, introduced in 2020 to help combat the financial hardships brought on by COVID, ends today.
From tomorrow, 1 Oct., employers, employees and people who are self-employed are required to resume mandatory pension contributions, government noted in a statement.
“The deduction of pension contributions resumes on 1 October 2022 and the payment of the mandatory 10% pension contributions is due by the 15th of November and thereafter every month going forward,” the government stated.
The pension holiday, which had been extended numerous times over the past two years, had been scheduled to end in June this year, but was extended to the end of this month as a means of assisting the population with the rising cost of living, Deputy Premier Chris Saunders said at the time.
Maximum pensionable earnings
Cabinet has issued an order that the maximum pensionable earnings for the remaining three months of 2022 will be $21,750, which represents 25% of $87,000, the maximum pensionable earnings for an entire year.
Deputy Director of Pensions Amy Wolliston said in the statement, “The National Pensions (Maximum Pensionable Earnings) Order, 2022 has been approved by Cabinet in order to provide clarity for the working population and their employers on the amount for which pension contributions are due for the remainder of 2022.
“Furthermore, employees and employers are reminded that any contributions paid during the pension holiday were considered voluntary and are not included in the 2022 earnings maximum.”
For more information, email [email protected] or call 945-8960.
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