As announced in the Budgetary Proposals and Financial Statement 2025, the Government of Barbados will issue a one-off $300 payment called the Solidarity Allowance. This tax-free payment is designed to distribute the benefits of stronger-than-expected corporate tax revenues from 2024 to a broad segment of the population, particularly those who have contributed to the National Insurance Scheme (NIS) in the past year, as well as pensioners, welfare recipients, and individuals receiving invalidity benefits.
Is the Solidarity Allowance taxable?
No, the Solidarity Allowance is free from income tax.
What is the criteria for receiving the Solidarity Allowance?
Every Barbadian over 18 years old and every person with legal status who has made a contribution to the NIS in the last year will qualify for the Solidarity Allowance;
All persons who made Contributions to NIS in the last 12 months;
All NIS Contributory Pensioners;
All Non-Contributory Pensioners including those accessing Special Needs grant;
All persons receiving invalidity benefit from the NIS;
All Welfare Clients receiving support, not in any category above;
Persons who are not on welfare and others who have not worked in the last 12 months;
Persons entitled to receive the allowance must have been ordinarily resident in Barbados during the last 12 months, that is, since April 1, 2024.
When will the payment be made?
Solidarity Allowance payments will be made from May 14, 2025, until June 30, 2025.
Who will issue the payment?
To facilitate this payment, different government agencies will pay different categories of persons. If you are employed in central government or a welfare recipient, your Solidarity Allowance will be disbursed through the Treasury Department, deposited directly into the same bank account where you currently receive your salary or welfare payments.
If you are employed by a State-Owned Enterprise (SOE), your payment will be issued by your organisation, using the payroll system already in place.
The Barbados Revenue Authority will issue payments to private sector employees registered in the tax system with banking information; and the National Insurance and Social Security Service (NISSS) will issue payments to self-employed persons, pensioners, and all others who are eligible but have not been captured by the other agencies. This includes issuing payments by cheque to private sector employees where no banking information is available for direct deposit.
What do you need to do if you do not fall into the categories mentioned or if you are not captured by any of the agencies disbursing the Solidarity Allowance?
Persons who do not fall in the above categories and who are eligible but have not received the payment from any of the payment agencies identified, should visit the designated locations across the country.
A due diligence check will be made and persons will thereafter receive the Solidarity Allowance if eligible.
What are the designated locations for registration?
Registration desks will be set up at the National Insurance Office in Collymore Rock and at designated Post Offices, which will be advertised on assigned dates.
Date
Location
May 7 – 9
General Post Office, Brittons Hill, St George, St. Thomas, St. John, St. Joseph
May 12 – 16
General Post Office, St. James, St. Peter, St. Philip, Worthing
May 20 – 23
General Post Office, St. Andrew, St. Philip, St. Joseph, St. John
May 26 – 30
General Post Office, Worthing, St. Peter, St. James, Brittons Hill
What information do you need to have to get registered at the designated locations?
Persons seeking registration will be required to present the following:
The National Identification Card (preferably the Trident ID Card);
The header of the last bank or credit union statement showing branch number and account number (if in possession of a bank/credit union account);
Your Tax Identification Number (TIN) if registered with the Barbados Revenue Authority The current address to which payment should be issued in the absence of a bank account; and
Contact number or email address.
A due diligence check will be made and persons will thereafter receive the Solidarity Allowance if eligible.
What should you do if you feel aggrieved?
In the event that you have a grievance in relation to Solidarity Allowance, there will be an appellate process which comprise of:
the Director of Finance and Economic Affairs, as chairman;
the Permanent Secretary in the Ministry of Labour and Social Security, and
the Permanent Secretary in the Ministry of People Empowerment and Elder Affairs.
It should be noted that all such grievance applications for the Solidarity Allowance must be made, before June 30, 2025, in order to be eligible.
If the Solidarity Allowance be paid to an eligible person who dies, would the payment form part of the estate?
This payment will not form part of the estate as it is not a benefit. Therefore, it will be returned to the state. (PR/GIS)
