Prime Minister Philip J. Pierre has announced the launch of an innovative Unemployment Insurance Program in collaboration with the National Insurance Corporation (NIC) that will definitively benefit unemployed persons in the country.
This initiative will include a robust Labour Market Policy designed to uphold the program’s viability.
PM Pierre emphasized that the focus will be on fostering entrepreneurship and enabling small businesses to flourish, supported by targeted staff training measures.
“In line with the government’s unwavering commitment to enhancing the quality of life and social protection for citizens, the National Insurance Corporation has been tasked with developing proposals for an unemployment insurance program,” he stated resolutely at a pre-cabinet meeting on Monday.
The Prime Minister stated that the program aims to assist those who have become “involuntarily unemployed” in receiving unemployment benefits without delay.
Furthermore, he reinforced the government’s commitment to establishing an effective Unemployment Insurance Programme in conjunction with an active Labour Market Policy.
PM Pierre explained that the primary objective of the Labour Market Policy is to facilitate employment opportunities for the unemployed, promote entrepreneurship, support small business development, and deliver essential work training, particularly for disadvantaged groups.
He called for employers to actively provide training opportunities.
Additionally, he declared that starting July 1, all NIC pensioners, including those who benefitted from a minimum pension increase last year, will receive a 3.9% increase in their pensions, based on the Consumer Price Index. This follows the 4.0% increase they received the previous year, also informed by the consumer price index.
The Prime Minister asserted, “The government will relentlessly collaborate with the NIC to guarantee that all social protection benefits are both adequate and sustainable.”
He added that the Unemployment Insurance Programme will operate alongside other vital social programs, such as the Public Assistance Program (PAP), which has effectively supported numerous individuals in various communities.
In addition, PM Pierre announced that the VAT removal on 70 items will take effect from August 1. He acknowledged the valuable contributions of the Chamber of Commerce in this development.
He affirmed that, starting August 1, “there will be an immediate reduction in the price of these goods. Even if costs go up, consumers will immediately benefit because the 12.5% VAT will no longer apply to goods that have been zero-rated.”
PM Pierre further stated, “We anticipate that prices for exempt goods moved to zero-rated will see a reduction as well. We expect consumers to gain from this adjustment, and we commit to working closely with the Chamber of Commerce to ensure relief on these products.”
He confirmed that the government will maintain a “zero-rated” approach for sanitary products and a selected range of building materials.
Notably, he added that as members of the Common External Tariff, a product of CARICOM, the government has formally requested a derogation of the CET to abolish import duties on these essential goods.