NASSAU, BAHAMAS- Total contribution income for the National Insurance Board (NIB) is estimated at approximately $413.6 million for 2025, reflecting a 14 percent increase over 2024’s $362.3 million, according to Dr. Tami Francis, Director of NIB.
Speaking at the Bahamas Business Outlook Conference at Baha Mar, Dr. Francis said the growth is the result of the July 1, 2024, legislated 1.5 percent contribution rate increase and ongoing improvements in collection.
“That was not reaction, that was responsibility,” Dr. Francis said, noting that that the adjustment has generated an additional average of approximately $4 million per month in contribution income, providing critical support for the fund’s long-term sustainability.
While the increase has strengthened the fund, Dr. Francis stressed that a structural gap between contributions collected and benefits paid remains a pressing concern. “A significant portion of the projected 2025 deficit, approximately $15 million, or 50 percent of the total shortfall, results from the persistent gap between contributions collected and benefits paid. This structural imbalance remains a key concern and continues to exert pressure on the Fund’s long-term viability if left unaddressed,” she said.
The 2025 deficit, initially projected at approximately $32 million and inclusive of the additional revenue generated from the rate increase, is now expected to be around $29 million based on year-end projections. While this represents a favorable variance against budget, Dr. Francis emphasized that it underscores the continuing financial challenges confronting the fund.
To address the gap, management has maintained a strong focus on proactive and disciplined contribution collection, including enhanced engagement with employers, targeted compliance audits, and strengthened enforcement mechanisms to address delinquency. “These efforts are essential to ensuring that all contributors meet their statutory obligations and that the burden of financing the system is equitably shared,” she said.
The reforms also included an increase in the insurable wage ceiling from $740 to $810 per week, which will rise again in July 2026. “For employees, this means more of your earnings are protected, benefits are calculated on a higher base, and income security better reflects today’s cost of living. For employers, it means contributions apply to a higher ceiling—but within a predictable, legislated framework that supports workforce stability and reduces crisis-driven disruption. This is shared security,” Dr. Francis said.
She highlighted the importance of timely and accurate contribution payments, noting: “What helps to sustain the system every single month is timely, accurate, and complete contribution payments. Every dollar owed to NIB represents a worker’s future pension, a mother’s maternity benefit, income for someone injured on the job, and stability for families when life takes an unexpected turn. When contributions are late or outstanding, it is not NIB that suffers first. It is the contributor. Late or outstanding contributions can delay benefit eligibility, reduce benefit amounts, or create gaps in contribution records that follow a worker for the rest of their working life. And once time passes, those gaps become far harder to correct. This is why compliance is not administrative housekeeping. It is social protection in real time.”
Dr. Francis also stressed the broader economic impact of the fund, saying timely contributions benefit employers and the wider economy. “For employers, timely contributions do more than satisfy a legal requirement. They protect employees’ entitlements, reduce future disputes and penalties, and contribute to a stable workforce. A system that pays benefits reliably reduces pressure on employers during crises—whether from illness, injury, maternity, or economic disruption. In simple terms: When NIB functions, businesses function.”
On the investment side, NIB continues to grow its reserves, which currently stand at approximately $1.1 billion, while exploring opportunities to diversify locally and abroad. “Managing investments will always present challenges, demanding our keen oversight as custodians of public funds. For the Board, investing in the Bahamas’ infrastructural development is both a core responsibility and a strategic way to utilize our surplus funds effectively,” Dr. Francis said.
Highlighting global trends, she noted that social security systems worldwide face similar pressures, including ageing populations, longer life expectancy, fewer contributors per retiree, increased benefit duration, and rising healthcare and income-replacement costs. “No social security system survives on goodwill alone. It survives on discipline, shared responsibility, and timely compliance,” she said.
