Informal Economy Lagging Behind in National Insurance Contributions

While employers and workers in the formal economy of the Turks and Caicos Islands are largely compliant with National Insurance Board (NIB) contribution requirements, participation from the informal sector continues to lag significantly, according to NIB Chief Executive Officer Rhesa Cartwright-Rolle.

NIB Chief Executive Officer Rhesa Cartwright-Rolle (left), and Stewart Haynes, Director of National Insurance Services in St. Vincent and the Grenadines and a representative of the English-speaking Caribbean Social Security Systems on the Bureau of the International Social Security Association.

Cartwright-Rolle made the disclosure during an interview with local media on the sidelines of the 33rd Meeting of Heads of CARICOM Social Security Organizations, currently being hosted in the Turks and Caicos Islands. She was joined by Stewart Haynes, Director of National Insurance Services in St. Vincent and the Grenadines and a representative of the English-speaking Caribbean Social Security Systems on the Bureau of the International Social Security Association.

Addressing long-standing public concerns about non-payment of contributions, Cartwright-Rolle said compliance within the formal sector,  including registered businesses and salaried employees, is generally strong. However, she noted that self-employed individuals, gig-economy workers, and others operating in the informal economy remain reluctant to contribute.

“The challenge for us is more so the informal sector,” she said. “Those self-employed persons, people in the gig economy, often are not thinking long-term. But you can’t get out of the system if you don’t put into it.”

She emphasized that NIB contributions are not simply a financial obligation, but a gateway to coverage and protection. “If you don’t pay, you’re not covered. Our mandate is to make sure people are covered. It’s not about the money, it’s about security.”

To address the issue, Cartwright-Rolle announced that NIB plans to launch a targeted media and outreach campaign early next year aimed specifically at self-employed and informal-sector workers. The initiative is expected to begin as early as January, but no later than February.

“We’re going to be coming to you,” she said. “People think it’s about the money, but it’s really about ensuring protection and access to benefits.”

Beyond compliance challenges, Cartwright-Rolle also highlighted operational developments at NIB, including the ongoing transition to a new computer system under the National Insurance System Solution (NISS). She described the process as one of the Board’s major current challenges, noting that staff are managing both the old and new systems simultaneously during the transition period.

Looking ahead, she said sustainability remains a long-term focus for the Board. While NIB is not yet drawing on its reserves to pay benefits,  unlike some older regional social security institutions,  the goal is to build strong reserves now to safeguard future generations.

The National Insurance Board marked its 33rd anniversary in April this year.

Meanwhile, Stewart Haynes underscored the regional importance of the conference, which brings together chief executives, board members, and senior managers of CARICOM social security organizations. This year’s theme, “Building Sustainable and Resilient Social Security Systems in a Time of Transition,” reflects shared regional concerns such as climate impacts, population ageing, and economic change.

“Social security is an intergenerational programme,” Haynes said. “It was there before us, it is here with us, and it must be there for future generations. Sustainability and resilience are not optional, they are essential.”

The conference provides a platform for regional institutions to share best practices, confront common challenges, and strengthen systems that play a critical role in protecting lives and livelihoods across the Caribbean.