National Health and Pensions Insurance (Employers' Contributions) Act 1938

Legislation au C1938A00026 Not in force Act

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NATIONAL HEALTH AND PENSIONS INSURANCE (EMPLOYEES’ CONTRIBUTIONS)

 

No. 26 of 1938.

An Act to impose Liability upon Employers to make Contributions in respect of Insurance against certain Contingencies affecting Employees, and the Wives, Children, Widows, and Orphans of Employees.

[Assented to 5th July, 1938.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the National Health and Pensions Insurance (Employers’ Contributions) Act 1938.

Commencement.

2. This Act shall commence on a date to be fixed by Proclamation.

Incorporation.

3. The. National Health and Pensions Insurance Act 1938 shall be incorporated and read as one with this Act.

Definitions.

4. In this Act, unless the contrary intention appears—

“insurance” means insurance under the National Health and Pensions Insurance Act 1938;

“National Health and Pensions Insurance” means insurance under the National Health and Pensions Insurance Act 1938;

“the Schedule” means the Schedule to this Act.

Imposition of liability to make payments.

5. Liability is imposed upon employers to make payments at the rates declared in this Act, being contributions or part of contributions payable in respect of National Health and Pensions Insurance.


Rates of payment.

6.—(1.) The payment imposed in respect of the insurance of an employed person shall be at such rate specified in paragraph (1) of the Schedule as is appropriate to the case.

(2.) The payment imposed in respect of the insurance of a partially exempt employee shall be at such rate specified in paragraph (2) or paragraph (3) of the Schedule as is appropriate to the case.

(3.) The payment imposed in respect of a juvenile contributor shall be at the rate specified in paragraph (4) of the Schedule.

(4.) The payment imposed in respect of an employed person who has attained the maximum age shall be at such rate specified in paragraph (5) of the Schedule as is appropriate to the case.

Increases in rates of payments.

7.—(1.) The rates of payments specified in paragraph (1) and paragraph (2) of the Schedule shall be increased by Threepence per week in respect of males and females as on and from the third day of January, One thousand nine hundred and forty-four, and, as on and from the third day of January, One thousand nine hundred and forty-nine, those rates of payments shall be further increased by Threepence per week in respect of males only.

(2.) The rate of payment specified in paragraph (3) of the Schedule shall be increased by Twopence per week as on and from the third day of January, One thousand nine hundred and forty-four, and that rate of payment shall be further increased by One penny per week as on and from the third day of January, One thousand nine hundred and forty-nine.

(3.) The rates of payments specified in paragraph (5) of the Schedule shall be increased by Threepence per week in respect of both males and females as on and from the third day of January, One thousand nine hundred and forty-four, and, as on and from the third day of January, One thousand nine hundred and forty-nine, those rates of payments shall be further increased by Threepence per week in respect of males only.

 

Section 6. THE SCHEDULE.

 

RATES OF PAYMENTS.

(1) For employed persons—

Males..........................One shilling and sixpence per week.

Females........................One shilling per week.

(2) For persons insured as partially exempt employees and, in respect of their insurance, entitled only to pensions and dependent child’s allowance—

Males..........................Elevenpence per week.

Females........................Fivepence per week.

(3) For persons insured as partially exempt employees and, in respect of their insurance, entitled only to widow’s pension and dependent child’s allowance or orphan’s pension—

Males..........................Sixpence per week.

(4) For juvenile contributors—

Males and females.................Fourpence per week.

(5) (a) For male employed persons who have attained the age of sixty-five years—

One shilling and sixpence per week.

(b) For female employed persons who have attained the age of sixty years—

One shilling per week.

Overview

The National Health and Pensions Insurance (Employers’ Contributions) Act 1938 was enacted to address the need for a structured system of health and pension insurance for employees, aiming to provide financial security for employees and their families in the event of certain contingencies such as illness, injury, and death. This Act complements the broader National Health and Pensions Insurance Act 1938 by specifically imposing a liability on employers to contribute to this insurance scheme. The policy objective is to ensure that employers participate in providing a safety net for their employees, thereby enhancing social security and reducing financial hardship among the working population and their dependents. The Act was passed by the Parliament of Australia and is set to commence on a date determined by proclamation, ensuring that the implementation aligns with broader economic and social policy objectives of the time.

Scope and Application

The National Health and Pensions Insurance (Employers’ Contributions) Act 1938 applies to employers who must make payments towards insurance contributions for their employees under the National Health and Pensions Insurance Act 1938. These payments cover insurance against certain contingencies affecting employees, as well as their spouses, children, widows, and orphans. The Act specifies different rates for various categories of employees, including employed persons, partially exempt employees, juvenile contributors, and those who have reached the maximum age for insurance. This legislation operates nationally across the Commonwealth of Australia and does not specify exclusions, exemptions, or thresholds within the text provided. The Act also allows for increases in the rates of payments through subordinate instruments, as detailed in the Act.

Key Provisions

The National Health and Pensions Insurance (Employers' Contributions) Act 1938 primarily imposes a liability on employers to make contributions for National Health and Pensions Insurance (sections 5 and 6). These contributions are calculated according to the rates specified in the Schedule to the Act, with different rates applying to various categories of employees, such as employed persons, partially exempt employees, juvenile contributors, and those who have attained certain ages (section 6(1) to (5)). The Act also mandates increases in these rates of payments at specified intervals (section 7). Employers are obligated to ensure that they make the requisite payments as stipulated by the Act. This includes accurately determining the category of each employee and applying the correct contribution rate as outlined in the Schedule. The Act further integrates the National Health and Pensions Insurance Act 1938, meaning that all provisions of that Act are to be read in conjunction with this Act (section 3). Failure to comply with the obligations under this Act can lead to legal consequences. The Act does not explicitly outline specific offences or penalties for non-compliance within its text, but penalties would typically be determined by other relevant legislation or regulations that govern the enforcement and compliance with insurance contributions. The absence of detailed penalties in the Act itself suggests that any breaches would be subject to general legal remedies or sanctions as provided under broader administrative or employment laws.

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Area of Law
Employee Benefits Law
Instrument
Act
Concepts
Definitions & Interpretation
Offence Provisions
Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.