Jersey's Council of Ministers has proposed a temporary reduction of 2% to employee social security contributions. The proposal remains subject to a States Assembly decision during the week of 7th September. If approved, employee contributions will temporarily reduce from 6% to 4% on earnings up to the Standard Earnings Limit (currently £4,558/month) from 1 October 2020 to 30 June 2021.
There is no proposed change to employer contributions.
It is anticipated the 2% reduction will help boost Jersey's economy by increasing the take home pay of about 55,000 employees and self-employed Islanders. The change forms part of the Government of Jersey's spend local campaign which is a key component of its £150m fiscal stimulus package announced in July.
Employers will need to ensure they have implemented the necessary change to their payroll systems to be effective from 1 October 2020.
If you would like to discuss this further with our payroll experts, please contact us on 01534 816000 or [email protected]