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The Protection of Employment Act

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The Protection of Employment Act

Severance Payment Contributions are not part of Social Security contributions but are collected by the Social Security Office on behalf of the Government of St. Kitts and Nevis.

Under the Protection of Employment Act No. 6 of 1986, a contribution equal to one percent (1%) of the wages of employees is payable by employers to the Government of St. Kitts and Nevis. All contributions are to be accounted for in a Fund called the Severance Payments Fund which is maintained by the Accountant General. The Government through the Labour Commissioners Office is responsible for paying severance payment out of this Fund to workers who may be made redundant from time to time.

The Social Security Office has been given the mandate to collect contributions to the Severance Payments Fund and to pass on all such collections to the Accountant General.

See Employer’s Guide for details

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