A Look Back on 2022

National Pension Scheme (Occupational Pensions) Amendment and Validation Act 2022

In force from 29 March 2022, the National Pension Scheme (Occupational Pensions) Amendment and Validation Act 2022 amends the National Pension Scheme (Occupational Pensions) Act 1998 to provide a further one-time lump sum withdrawal of up to $6,000 by a member or former member of a defined contribution pension plan, or a local retirement product, who has not attained the normal retirement age. Although this change does not impact employers directly, HR professionals and business owners will want to be aware of this change should an employee make enquiries regarding early draw down from their scheme.

Payroll Tax Amendment and Validation (No.2) Act 2022

On 20 October 2022, the Payroll Tax Amendment and Validation (No.2) Act 2002 came into force. The main amendments include clarification around what constitutes actual renumeration and the widening of exclusions to renumeration more than any substantive or significant changes. Points to note include that “gratuity” for the purposes of exclusions to renumeration has been clarified to mean “any gratuity for services rendered, whether paid by a customer directly or paid by an employer or self-employed person from a fund entirely constituted of gratuities paid by customers for services rendered”. Given that these changes are already in force, those managing payroll will want to make sure that gratuity, under this new definition, is not included for the purposes of payroll tax.

What to Expect in 2023

Employment (Minimum Hourly Wage Entitlement) Act 2022 (Bill)​​

On 1 June 2023, the Employment (Minimum Hourly Wage Entitlement) Act 2022 (Bill)​​, which was tabled on 18 November 2022, is set due to be introduced. The effect? Bermuda will have one of the highest minimum wages in the world at $16.40. The new legislation would give employees the right of entitlement to minimum wage. From early summer next year, employers may need to review the terms of employee pay to ensure compliance. This move is perhaps necessary to ensure that the standard of living is kept in line with inflation and will certainly go to benefit employees.

Amendments to the Contributory Pensions Act 1970

The Speech from the Throne 2022 revealed that there was intention for the Government to introduce amendments to the Contributory Pensions Act 1970 “to make provision for a sliding scale in contributions, based on salary earned and not a uniform contribution irrespective of income”. No bills have been proposed and the exact amendments which are sought are not detailed. Whilst this could be positive for both employers and employees where incomes are modest such changes may not be so welcome for those providing, and receiving, higher incomes. It is likely that in 2023 we will know what shape the proposal will take, however there is little to indicate that any amendments will come into force within the next 12 months.

Implementation of the Personal Information Protection (PIPA) Act 2016

The Speech from the Throne 2022 also set out that the Personal Information Protection (PIPA) Act 2016 would finally be implemented, albeit in a phased way. PIPA provides citizens with informational privacy and sets out what organisations and businesses must do in respect of the utilisation and sharing of personal information. Whilst PIPA was given Royal Assent in 2016, it still has not been implemented. The primary reason for this being that the Government was providing organisations with the opportunity to ready themselves. No date for when we might expect PIPA to finally be phased out was provided in the Speech and the Government has not made any further announcements, however, the suggestion is that this is something to look out for during the course of 2023. All businesses will be affected, and employers will need to ensure that they are complying with each phase of PIPA in respect of their employee’s personal information.

Share
X.com LinkedIn Email Save as PDF
More Publications
050-Insolvency-Restructuring-Grid-Image
30 May 2025

Bankruptcy & Restructuring – To Enforce, or not to Enforce

Bermuda’s flagship restructuring process is the appointment of provisional liquidators, whose powe...

Bermuda-1024x576-1
22 May 2025

Corporate real estate acquisition in Bermuda

Corporate real estate acquisitions in Bermuda are a matter of careful balance. That is because, a...

Appleby-Website-Insurance-and-Reinsurance
22 May 2025

Long-term reinsurance and ILS are set for growth

After a record-breaking  2024, Bermuda’s life reinsurance sector is likely to expand further this...

Appleby-Website-Insurance-and-Reinsurance
15 May 2025

Bermuda: The vital role of the principal representative

Bermuda's regulatory framework requires every insurance company registered under the Insurance Act 1...

Employment-and-Immigration
30 Apr 2025

The End of the Digital Nomad Visa: How Else Can Individuals Reside in Bermuda?

As of 28 February 2025, Bermuda officially discontinued its popular “Work from Bermuda” (WFB) Ce...

Appleby-Website-Private-Client-and-Trusts-Practice
25 Apr 2025

Compliance with Pipa for trustees

The Personal Information Protection Act 2016, the island’s data protection legislation, applies to...

Appleby-Website-Privacy-and-Data-Protection
14 Apr 2025

M&A transactions under PIPA (Bermuda)

Mergers and business acquisitions are among the many different types of business transactions that r...

Appleby-Website-Insurance-and-Reinsurance
1 Apr 2025

Bermuda: With everything growing, all of the ILS world will rise together

It’s been an exceptionally busy and record start to the year for the catastrophe bond sector, and ...

Appleby-Website-Employment-and-Immigration
27 Mar 2025

Entering and Exiting Bermuda for Visa-Controlled Nationals

As it stands, with direct commercial flights to and from Bermuda only going from the United Kingdom,...

Appleby-Website-Corporate-Practice
27 Mar 2025

How foreign companies become Bermuda companies

Bermuda, renowned as a global business hub, offers a robust legal and regulatory framework that attr...