The Government of St. Kitts and Nevis has granted approval for bonuses paid in December 2016 to be made without any deductions of [Housing and Social Development] Levy, with the additional provision that no Employer’s contribution be paid on account of such bonuses.
The standard treatment of bonuses paid in December is that such bonuses are normally subject to deductions of Housing and Social Development Levy at the rate of 8% in the case of persons whose monthly average earnings during the year is $1500.00 or more. It is also normal that such bonuses would be subject to the payment of Severance Payment Contribution by employers.
The Government has indicated that on this occasion no Levy deductions will apply and no employer payment in respect of Severance Payment contribution will apply to the bonus payment.
The usual exemption from payment of Social Security contributions in respect of bonuses paid in the month of December still applies as normal. Also, the usual exemption of employer contributions to the Levy in respect of bonuses paid in the month of December still applies as normal
Hence, no Social Security contributions; no Levy contributions; and no Severance Payment Contributions are payable in respect of bonuses paid for the month of December 2016.
All employers and employees are asked to take due notice and be guided accordingly.
Public Relations Officer
Public Relations Department | Social Security Board
Robert Llewellyn Bradshaw Building | P.O. Box 79 | Bay Road | Basseterre | St. Kitts
Tel: (869) 465 2535 Ext. 2603, 2604, 2620 | Fax: (869) 465 5051
Email: firstname.lastname@example.org | Website: http://www.socialsecurity.kn