Business Editorial The Barbados Optional Savings Scheme (BOSS) Explained By Kenroy White Posted on June 20, 2020 2 min read 1 Share on Facebook Share on Twitter Share on Linkedin This is an introduction to the Barbados Optional Savings Scheme (BOSS) which will introduce a public sector salary bond. Bond investments are nothing new. Governments and corporations usually issue bonds as a way of borrowing money for investments. Typically bonds are instruments that offer a fixed rate of interest over a fixed period and provide a relatively safe investment for the purchaser. Here is some information on the Barbados Optional Savings Scheme (BOSS): Employees will be paid the majority of their salary and a small percentage will go towards bonds.The program is completely voluntary so public workers can choose whether or not to participate. Therefore each employee will have a minimum of 0% up to a limit to be determined to go towards bonds.The percentage of funds going to bonds is calculated on net income.Bonds are issued monthly over an 18 month period.Each bond matures 4yrs after the date of the issue.The interest is 5%/annum and paid every 6 months.Interest payments are not subject to withholding tax.Investors can sell their bonds thus creating a secondary market.Bonds will have an early redemption feature (after 24 months of the date of issue) which would allow investors to redeem their bond early through the Central Bank.Persons earning less than $36,000 a year will receive all their salary in cash. You can visit gisbarbados.gov.bb for further information or leave a comment below if you have any questions.