The rate of contribution required to be made is the same for you and for your employer. It is a percentage of your earnings. Your earnings include:
- holiday pay
- long service leave pay
- extra salary
- directors fees
- remuneration of any kind.
Earnings do not include:
- lump sum payments (other than accrued holiday pay) paid as a bonus gratuity or retiring allowance on termination of employment, or
- payments from a pension or annuity from past employment, or
- dividends (unless you are a shareholder employee), or
- any amount earned as an employee from employment outside the Cook Islands from an employer who is not resident; in and does not carry on business in the Cook Islands.
For a self-employed person earnings are the same as your assessable income under the Income Tax Act 1997.
Members are required to pay in 5% of their earnings matched by 5% from their employer.
These contribution rates may be varied from time to time by the Queen’s Representative in the Cook Islands, on the recommendation of the Board and the Trustee.