Barbados NIS and Personal Allowance Changes 2025
BARBADOS NIS CHANGES 2025
EE NIS: 11% BASE GROSS INSURABLE EARNINGS
EE NIS: 12.75% BASE GROSS INSURABLE EARNINGS
EE AND ER RESILIENCE FUND (RRF): 0.25% BASE GROSS SALARY ITEMS
Table Name: BB_RRFparam
Fields: Type_ ; Fld1; Fld2
(1) Type_ takes four values.
When 0 = RRF Insurable Earnings Defined By
Then fld1 is
(i) 0 = “NIS” Insurable Earnings equal to RRF Insurable Earnings
(ii) 1 = RRF Insurable Earnings are a subset of “NIS” Insurable Earnings
(iii) 2 = RRF Insurable is independent of “NIS” Insurable Earnings.
And Fld2 is the empty string
When 1 = RRF Insurable Payroll Code (Type 1)
Then Fld1 = T = Timesheet ; A = Allowance; O = Other Income
and Fld2 = the corresponding payroll code
When 2 = RRF Insurable Payroll Code (Type 2)
Then Fld1 = T = Timesheet ; A = Allowance; O = Other Income
and Fld2 = the corresponding payroll code
When 3 = RRF Override Deduction Code
Then Fld1 = D = Deduction
and Fld2 = payroll deduction code
## Possible Risk
Completely new.
Navigation: Payroll>>Maintenance>>Statutory Deductions>>Barbados>>Barbados RRF Parameters
Prerequisites: None
Select the type of calculation required for the RRF, if is a subset change the value to 1, if is independent change to 2.
Then import the values that are base for the calculation
Template:
Upload timesheet and other income codes that are Insurable using Fld 1 (codes are insurable and also RRF applicable)
The calculation is:
Bi-monthly NIS Ceiling 2640.
If gross insurable earnings are greater than ceiling, USE ceiling by 11%
RRF is 0.25% of gross insurable earnings, except ALLOWANCES, no ceiling applicable.
Insurable earnings = 3575.79 (reg + lunch allow)
3575.79>2640 (Bi-monthly ceiling)
2640*11% = 290.40 EE NIS portion
RRF = 3520.79*0.25% = 8.80 RRF EE portion
EE NIS contribution = 290.40+8.80 = 299.20
If the pay code is not insurable, but RRF applicable, then use FLD 2 when uploading the pay code in the screen.
Class Z
EE age must be over 67 Y.O.
Contributions
0.5% EE
1.25% ER
NIS EE = 2640*0.5% = 13.2
RRF =3477.81*0.25% =8.69
NIS Contribution = 13.2 +8.7 = 21.89
Notes from Sharon:
Calculation of “NIS”
The “NIS” continues to be calculated without change on insurable earnings flagged in the payroll codes screens. The modified rates would apply.
(c) Calculation of RRF
• The RRF will be calculated on insurable earnings flagged as per C. >> 3. >> (a) Setup. The modified rates would apply.
• Rates as per Image 3 will be applied in the calculation.
• The calculation of the RRF will be performed as indicated in Image 3 on Insurable
earnings as per C. >> 3. >> (a) Setup.
(d) “NIS” Overrides
There is significant change to how overrides for Barbados will work. This is because the “NIS” and the RRF follow different calculations.
Currently:
The override cycle change is used to override the NIS.
Example: A fixed amount of $5.00 is entered using a P..FN or D.. dedCode… X. The
amount deducted from the employee and shown on the register is $5.00.
Changed To:
The override cycle change will be used to override the “NIS” only.
Example: A fixed amount of $5.00 is entered using a P..FN or D.. dedCode… X. The
amount deducted from the employee will be $5.00 attributed to “NIS”. There will be
no RRF calculated. The amount shown on the register will be $5.00.
RRF Overrides
The RRF part is to be overridden using a named deduction code. The customer is
strongly encouraged to create a deduction code solely for the purpose of RRF overrides
and to set up same in the appropriate configuration. The RRF is to be overridden
separately from the “NIS”.
• The employee RRF and employer RRF cannot be overridden separately as the
employee contribution and the employer contribution is the same, at this time, at
0.25%.
• It is important to note that the named deduction code is not treated as a statutory
deduction code, and it does not behave as one.
(f) Note on Overrides
The overrides for the National Insurance (NIS) work as follows:
• An override entered for “NIS” only.
Result:
The override amount will be deducted as “NIS”.
No RRF will be calculated or deducted.
• An override entered for “NIS” together with an override for RRF.
Result:
The override amount will be deducted for “NIS”
The override amount will be deducted for RRF.
The total amount of “NIS” and RRF will be deducted as NIS.
• An override amount entered for RRF only.
Result:
The calculated amount of “NIS” will be deducted.
The override amount of RRF will be deducted.
The total amount of “NIS” and RRF will be deducted as NIS.
References: