Guyana: No Update on Minimum Pension Increase Despite NIS Surpluses

The National Insurance Scheme (NIS) has announced that it is making profitable investments, yet there has been no definitive update regarding an increase in the minimum pension. According to the NIS website, the minimum Old Age pension is scheduled to rise from GY$35,000 in 2020 to GY$43,075 per month starting January 1, 2025. In contrast, the current minimum public service salary stands at GY$102,346.

Board Chairman Ramesh Persaud addressed inquiries about the pension increase, stating that such decisions fall under the purview of Finance Minister Dr. Ashni Singh, who did not provide comments on the matter. Persaud noted, “That is in the domain of the Minister of Finance to provide guidance on… The Board is independent but the structure of the NIS is that it is under the administration of the Ministry of Finance and those fiscal and policy decisions are guided by the Minister of Finance.”

President Irfaan Ali, in a separate comment, expressed his government’s commitment to enhancing social welfare programs, which include universal cash grants for residents aged 18 and older, school children, disabled individuals, elderly pensioners, and vulnerable groups. He mentioned, “The ecosystem surrounding different segments of the population, including the pensioners, is being continuously analysed… we will continue to look at ways in which we can improve and expand social benefits to the population.”

While the government has already outlined its budget measures for 2026, Ali did not dismiss the possibility of increasing NIS pensions but refrained from specifying a timeline. He stated, “We are not only looking at this from a single barrel perspective. We are looking at this from a holistic perspective… once the economy can afford it and once it falls in the broader framework of social support, we will be looking at it.”

During a recent event announcing that NIS pensions are now payable through Mobile Money Guyana, Money Gram, and Bill Express, the NIS Board chairman highlighted the organization’s strong financial position, noting that it has been making surpluses for the past five years, which are being reinvested for future pensioners. Officials indicated that the 57-year-old social security entity is benefiting from increased economic activity across various sectors. The finance minister reported that the NIS has gained nearly 70,000 new contributors, representing a 38 percent increase over the past five and a half years, with the number of self-employed individuals joining the NIS doubling to almost 9,000 during the same timeframe. He remarked, “These numbers reflect the dynamics in the Guyanese economy because more persons are working, more persons are employed, and more employment opportunities are being created.”

Source: demerarawaves.com