GSD says planned social insurance increase ‘a further blow’

The GSD on Tuesday said the proposed increases in social insurance would be “a further blow” in a year of rising costs, mounting inflation, eroding wages and higher taxes, fees and charges.

The GSD was reacting to Sir Joe Bossano’s comments on GBC Viewpoint last Thursday after the Minister for Economic Development and Social Security said he was proposing a 1% increase in social insurance contributions this year and again next year.

“These increases revealed in the Viewpoint programme were not announced in the budget and will layer further pressure on employers and employees,” a GSD spokesman said.

“Even if the increases are small [at 1% this year and next year] they cannot be seen in isolation but instead need to be appreciated against the wider backdrop of higher taxes, fees and charges.”

“The combination of all these with inflation will mean that some families will have 10-15% less money in their pockets this year as a result of the overall effect of these budget measures.”