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Employed People

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Employed People

Part One What are Contributions	Part Two Class 1 Contributions
Part Three Your Contribution Liability	Part Four Social Security Registration Cards
Part Five Credits	Part Six Employment Legislation

Part Seven
Further Information

Part One - What are Contributions

Contributions are the payments which are made to the Social Security Department so that they can pay you benefits.

There are 2 types of contributions:

Class 1 - paid by people working for an employer and

Class 2 - paid by everyone not working for an employer

If you work for an employer for 8 hours or more a week, this leaflet explains how your Class 1 contributions are worked out and collected. If you are unsure about any point, please do not hesitate to contact the Department, where the staff will be pleased to help.

Part Two - Class 1 Contributions

Primary and secondary contributions

There are two types of Class 1 contributions:

Primary Class 1 contributions from employees; and
Secondary Class 1 contributions from employers.

The Primary and Secondary Class 1 contributions are a percentage of the gross earnings made to an employee during any month, up to an earnings limit.

At present the percentages are:-

Primary - 6.00%
Secondary - 6.50%

Supplementing or ‘topping up’ contributions

Every month, if you earn the same or more than the earnings ceiling, you are paying the full amount of contributions needed to qualify for all our benefits (to include Health Benefit).

If you earn less than the monthly earnings ceiling, your contributions will be topped up by the States. This will ensure that you receive the same amount of benefits as if you had paid full contributions.

Lower Earnings Threshold

To avoid taxpayers’ money being used to top up the contributions of people working very few hours, there is a Lower Earnings Threshold Level. Contributions below this level are not topped up.

If you work for more than one employer and your working hours are more than 8 hours per week for each job, you must remember to add together your total earnings.

Should your total earnings be less than the Lower Earnings Threshold Level you will receive a Statement of Arrears Notice. This will tell you how much you have to pay in order to receive the standard rate of benefit.

For further details, please read the leaflet entitled Contribution Levels and Benefit Rates

You may be able to have contributions credited to you if you are:

A student;
Sick or unable to work;
Unemployed; or
widowed.

These credits help prevent gaps in your contribution record, and protect your right to future benefits. See Part 5 of this leaflet for more information.

Part Three - Your Contribution Liability

Employees for whom both primary and secondary contributions must be paid

If you are over school leaving age and under pension age (during any part of a month) both you and your employer would normally have to pay contributions.

If this applies to you, remember to give your blue registration card to your employer. (See Part 4)

Employees for whom only a secondary contribution has to be paid

You do not have to pay primary contributions if you:

are over pension age (including women who claim a pension at 60); or
have made a married woman’s, a widowed father’s or a widow’s election not to pay primary contributions.

Please note, your employer is still required to pay secondary contributions on your behalf. Please ensure that you obtain a red registration card from our Department (see Part 4) which you then pass on to your employer.

You should also read our leaflet People who need not pay contributions. Employees for whom no contribution has to be paid

You and your employer do not have to pay contributions, and your employer does not have to hold a registration card for you, if you are:

under school-leaving age during the whole of a month; or
normally employed for less than 8 hours a week by that employer.

Choosing not to pay contributions

If you work for an employer and do not want to have primary contributions taken from your earnings you must apply to us. You will be asked to fill in an application form and give proof that you are eligible. We will give you a red Social Security registration card to show that you have chosen not to pay. If you already have a blue card you must exchange it for a red card. Contributions will continue to be taken from your wages until your employer has the red card.

The choice you make takes effect from the first day of the month after we receive your application. However, you can call at the Department any time after your last pay day in one month, but before the first Friday in the next month.

To find out if you are eligible to choose not to pay contributions please refer to the leaflet entitled People who need not pay contributions. This group includes women who married prior to April 1st 2001, widows, widowers and retired people over 60 years of age.

Changing your mind

If you change your mind and decide that you want to start paying contributions again, you must visit us to fill in an application form and exchange the red registration card for a blue one. You should then give the blue card to your employer as soon as possible. Primary Class 1 contributions will be taken from your earnings starting from the beginning of the month following the month we receive your revised application.

Employees working outside the Island

Normally, if you work for a short time outside the Island for your Jersey employer, contributions will be taken from your wages as though you were still working in Jersey. However, if you leave the Island permanently or are not working for a Jersey employer, you do not have to continue to pay contributions to Jersey.

People with more than one employer

If you work for more than one employer (for 8 hours or more per week) you must give each of them a registration card. You can get the extra cards from this Department. Each employer (for whom you work 8 hours or more per week) who has a blue registration card in your name will take a primary contribution from your earnings, up to the monthly earnings ceiling. If your total primary contribution is more than the monthly ceiling, the Department will automatically repay any overpaid contributions within six months.

Earnings

Whenever your earnings are paid, your employer is required to deduct the primary Class 1 contributions from them (up to the monthly earnings ceiling).

Please note - Earnings include:

wages or salary (ignoring any expenses you have paid and claimed back);
extra payments (for example, overtime, bonuses, commission and back pay);
holiday pay;
set aside savings (in the month in which they are set aside);
pay during sickness (but less any Social Security Incapacity Benefit your employer claims back from you);
tips or gratuities passed on by your employer;
mortgage subsidy;
profit sharing; and
board and lodging where free or subsidised food or accommodation forms part or all of your pay package (for example, in hotels, guest houses, private domestic service).

For exact details of items which do and do not count towards gross earnings see the Employers Guide.

Part Four - Social Security Registration Cards

Types of registration cards

Blue card - Full Rate Liability
This shows that both primary and secondary contributions have to be paid by your employer. The employer has the right to take the primary contributions from the gross earnings paid to you.
Red card - Exempt Rate Liability
This shows that only a secondary contribution has to be paid by your employer. The employer does not have the right to take contributions from the gross earnings paid to you.

Getting a registration card

Registration cards are issued to people when they first register at the department. You must call into the Department with photographic identification e.g. a passport or driving licence to obtain your registration card. If you live in Jersey this will normally be when you start a job after leaving school. If you are still at school but have reached the age of 16, it will be when you start a casual job (e.g. holiday or evening work ).

If you do not have a registration card you must get one from us within two working days of starting a job. Both you and your employer will be breaking the law if you are employed for more than two working days, or you are paid any wages or salary, without your employer having your card.

We can give you extra or replacement registration cards if you:

lose your card;
start a second job along with the one you already have;
change your name; or change your liability, for example, when you reach pension age.

School leavers

Registration cards are available to young people from the first of the month in which they are 16. Contributions paid on wages earned through part-time and holiday work contribute towards their benefit entitlement.

Possession of a Social Security registration card by a 16 year old is not proof that the owner is entitled to leave full-time education and take up full-time work.

The Education Law requires a young person to remain in full-time education until the 30th June in the school year during which they are 16. It is an offence in law to employ those under statutory school leaving age on a full-time basis or part-time during school hours.

Part Five - Credits

Who can get credits?

You may be able to have contributions credited to you if you are:

a student;
sick or unable to work;
unemployed; or
widowed.

These credits help prevent gaps in your contribution record, and protect your right to future benefits.

Please remember that contributions have to be paid on any earnings you receive while you are sick or unable to work.

Becoming unemployed

If you become unemployed and you have been paying Class 1 contributions, you may be credited with contributions for this period as long as you:

register at the Department’s Work Zone no later than Friday every week you are unemployed; and
have been unemployed for at least six days in a row (not including Sunday); and
do not have another job in your spare time, unless your earnings from that job are very low; and
normally earn your living by working for an employer.

You will not be given unemployment credits if you:

left your job through your own choice;
lost your job through misconduct;
put unreasonable limits on the type, hours, rate of pay, or place of work. We will take account of your physical condition, the local employment situation or any other facts that are relevant;
do not apply for or take a suitable job;
refuse or fail (without a good reason) to apply for or take a reasonable offer of a job suggested by an officer of the Work Zone;
are not working because of a trade dispute in which you are directly involved;
are on holiday;
are covered by a payment from your last employer, given instead of notice; or
are a seasonal worker and your unemployment falls in the ‘off season’ when you are not normally employed.

Unemployment benefit

There is no unemployment benefit in Jersey. However. if you have lived here for 5 years you may be entitled to Income Support. If you need financial assistance you should contact the Department's Income Support Zone.

Part Six - Employment Legislation

Jersey Employment Legislation requires that;-

You must be provided with written terms of your employment within at least four weeks of your employment starting, if you work for eight or more hours a week.

If you ask your employer for a pay slip or pay statement, they must supply it.

Even if you work for less than eight hours a week, you do have statutory rights relating to holiday pay.

There is a minimum wage rate in Jersey.

There are minimum periods of notice to be given by you and your employer if your employment is to be ended and your contract is not for a fixed term.

There are minimum periods of rest between shifts.

For further details on all of the above points please either contact the Compliance Section on 445505 or the Jersey Advisory and Concilliation Service (JACS) on 730503.

Part Seven - Further Information

This leaflet gives general information and does not try to give full details on any particular matter. It cannot be treated as a statement of the Law.

Please contact us if you are in doubt or have any questions or suggestions about the information contained in this leaflet.

Our staff are here to help you, so please do not hesitate to telephone the Contributions Section on 445505, call into our La Motte Street office.

Please note: calls to the Department may be monitored for training purposes.

If you become unemployed you may wish to visit our website www.jobsinjersey.gov.je and search for current vacancies online.

Other leaflets that may be of interest

Health and Safety

Leaflets on health and safety matters are available from the Health and Safety Inspectorate - telephone 280475.

Large print versions of most of our leaflets are available. Please call us on 445505 and we will be happy to send them to you.