Deputy Premier Chris Saunders advised the public of Cabinet’s decision to extend the pension holiday to September and warned that inflation will continue to rise.
Saunders, who is also finance and labour minister, said government’s decision to extend the pension holiday from June to September is meant to assist the population with the rising cost of living.
He says the public can expect further inflationary increases.
“Extending the pensions deadline will ensure employers have more cash on hand to meet their business needs, and that employees can have increased money to meet their living expenses. With the cost of living in the Cayman Islands already up by 11.2 percent in the first quarter of 2022, and more inflation expected before year-end, our goal was to reduce the pressure on employers and to keep as many people in work as possible,” he said.
Saunders noted that the pensions holiday was originally developed to mitigate the impacts of the COVID-19 pandemic on local businesses.
On Friday the extension was gazetted.
The ongoing national pension holiday had been set to end next Thursday.
The Ministry of Labour, through a statement, explained that “cabinet’s decision to extend the temporary break in the legal requirement for joint contributions by employers and employees to workers’ pensions, aims to reduce the impact of the current global inflationary crisis on local businesses and individuals”.
The extension was also one of the measures Opposition Leader Roy McTaggart and his Progressives team advocated for as a quick and easy measure to assist the public. It was instituted back in 2020 as a COVID-19 relief mechanism.
As with the previous pension holidays, government owned companies and statutory authorities will continue to be excluded from the new Cabinet order, and must continue to make pension contributions, the ministry noted in its advisory.
Although the holiday is continuing, the Department of Labour and Pensions also reminded the public that voluntary pension contributions can still be paid into pension funds.
“Either the employee or the employer may opt to pay voluntary pension contributions. However, the other party is not required to contribute as well,” it stated.
Anyone who has questions or requires further information can contact the department at [email protected].
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