Options for the Married Woman
Download this leaflet by clicking on the link below Options for the Married Woman
Part One - The Purpose of this leaflet
If you are a married woman, this leaflet aims to tell you about the contribution options you have and to answer the most frequently asked questions. We hope that this information helps you to make an informed choice on the best option for you.
Part Two - What are contributions?
The Social Security scheme is like any insurance scheme - you pay premiums so that you can qualify to get benefits. Contributions are the premiums you pay to the Social Security scheme.
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.
Everyone between school leaving age and pension age is liable to pay contributions - even if they are not working.
Class 1 Contributions
These are paid through your employer. There are 2 parts to a Class 1 contribution.
Primary Class 1 - your employer may deduct this part from your wages before they are paid to you. Primary Class 1 contributions are 6% of your gross wages up to a monthly earnings ceiling. Contributions are not paid on anything you earn above this ceiling.
Secondary Class 1 - this is paid by your employer. Secondary
Class 1 contributions are 6.5% of your gross wages.
The earnings ceiling is assessed on 1 January each year. The percentage change in the earnings index is used to re-assess the ceiling.
“Topping up” Class 1 Contributions
If you earn the earnings ceiling or more in each month you are paying the full amount of contributions needed for us to pay you the standard rate of benefits.
If you earn less than the monthly earnings ceiling, your contributions will be topped up from States revenue. This is called supplementation. The topping up makes sure that you will get the same amount of benefit as if you had paid full contributions.
Lower earnings threshold
There is a monthly lower earnings threshold. Contributions are not topped up on earnings less than the lower earnings threshold.
We have a lower earnings threshold to avoid taxpayers’ money being used to top up the contributions of people who are doing a small amount of part-time work.
If you earn wages of less than the lower earnings threshold in any month we will send you a Statement of Arrears Notice. This will tell you how much you have to pay to entitle you to the standard rate of benefit.
Class 2 Contributions
People who are not in Class 1 employment pay these; for example, self-employed and people who are not working. Also people who are working but earning below the monthly earnings threshold pay Class 2 contributions so they can receive full benefits.
There are 2 types of Class 2 contribution:
The Standard Rate ; and
The Earnings Related Rate
The Standard Rate Class 2 These contributions are a set monthly figure. This is the amount you need to pay each month to get the standard rate of benefits.
The Earnings Related Class 2 These contributions are based on your earned income as detailed on a specified Income Tax Notice of Assessment. This type of Class 2 contribution is lower than the standard rate. Your contribution will be topped up to the standard rate Class 2 contribution by the States. This topping up gives you entitlement to the standard rate of benefit.
We only use your personal income. Your husband’s income will be ignored.
To apply for an Earnings Related Class 2 contribution please send in your Income Tax Notice of Assessment before 31 March each year. Assessments received after that date cannot take effect from 1 January. Any reduction will take effect from the beginning of the quarter in which we receive the Assessment.
If you want more information about Class 2 contributions please read the leaflet entitled -
People who are Self-Employed & Non-Employed Part Three - The benefits of paying contributions A full contribution record of your own will entitle you to the full range of Social Security contributory benefits. These are:
- Incapacity Benefit - Short Term Incapacity Allowance, Long Term Incapacity Allowance and Incapacity Pension.
- Maternity Benefit - Maternity Grant and Maternity Allowance
- Pension
- Death Grant
- Survivor’s Benefit - paid to your husband in the event of your death.
Part Four - Are there other ways to keep my record up to date?
Yes. In certain circumstances we can credit your account. Credit takes the place of Class 2 contributions and protects your future entitlement to benefit.
We can credit your account if you are:
- sick or unable to work
or - unemployed
or - staying at home to look after a child under age 5
or - over 18 and a full time student
Sick or unable to work
If you are unfit to work and a doctor gives you a medical certificate please fill it in and send it to us as soon as possible.
You can get Incapacity Benefit if you have paid enough contributions.
Even if you are not entitled to benefit you may be entitled to credits which will protect your future entitlement to benefits. This depends on whether or not you have paid a certain amount of contributions at some time over your working life.
Contributions paid to some other countries can be used to claim Jersey benefit or credit your account. So even if you have not been in Jersey very long, send your medical certificate to us telling us that contributions have been paid in another country. We will check to see if you can be paid benefit using the contributions paid in the other country.
Unemployment Credits
If you are over 18 and have lived and worked in Jersey for at least one full year you may be able to register as unemployed at the Work Zone in the Social Security Department. An appointment will be made for you to talk to an Employment Adviser. The Jersey Social Security scheme does not pay unemployment benefit, but you may qualify to have your Social Security contributions covered with unemployment credits.
If you need help you may be able to claim a Parish Welfare Grant. For more information please contact the parish hall of the Parish in which you live. If you live in St Helier, please contact the St Helier Community Services Department at the Town Hall.
Staying at home to look after a child under 5
Home Responsibility Protection or HRP is a system which protects the contribution record of a person who stays at home to look after a child under the age of 5. The child must be a member of their family. The protection is in the form of credits. These credits take the place of Class 2 contributions and protect entitlement to Pension and Survivor’s Benefit. They do not protect entitlement to Incapacity Benefit, Maternity or any other contributory benefit.
Full time students over 18
Full time students over 18 may be entitled to credits.
To qualify you must be:
- over 18;
- a Jersey resident; and
- attending a full time course of education.
Student credits can be awarded for a maximum period of 36 months over your working life. This can be in one 3 year period or split over shorter periods of study. To apply you must fill in an application form and give proof that you satisfy the qualifying conditions. To get an application form please contact the Contributions Zone.
Part Five - Is there any other way my contributions can be covered?
Yes. If you have given up work to look after a person receiving Attendance Allowance you may qualify for the Invalid Care Allowance.
Attendance Allowance is paid to a person who needs constant care and attention because of an illness, disability or medical condition. Invalid Care Allowance is paid to a person who gives up work to provide the care. People getting Invalid Care Allowance may also have their contributions paid for them.
If you think you may qualify for Invalid Care Allowance, please contact the Health Zone.
Part Six - What happens if I...?
... separate or divorce?
Tell us as soon as possible. There may be benefits that you can claim or have increased because your income has changed. When you are divorced you have to pay contributions as a single person even if you chose not to pay as a married woman. If you delay in telling us there may be outstanding contributions which you will be asked to pay.
... am widowed?
Tell us as soon as possible. You may be entitled to a Survivor’s Benefit and have your contribution record credited.
Part Seven - How is my Pension worked out?
If you were married before 1st April 2001 and you are still married to the same husband when you reach pension age, you will be able to claim a pension based on your own contribution record. When your husband reaches pension age you will have a choice.
The choice is:
- you can continue to get the pension based on your own contribution record; or
- if more favourable, you can claim a pension based on your husband’s contribution record. The amount you can claim is equal to 66% of his pension entitlement.
If your husband reaches pension age before you do he will be able to claim a married rate pension. He can get an extra 66% pension for you. When you reach pension age the increase to his pension will stop and you have the choice shown above. The pension you choose will be paid directly to you.
If your marriage has ended before you reach pension age. For each marriage that took place before 1 April 2001 we will compare your contribution record and that of your husband at that time. If his record is better than your own his contribution record will be copied into your account.
If your current marriage ends you will be responsible for your own contributions - even if you re-marry. You will not be able to claim a pension based on your new husbands contribution record.
For example, if you have been married 3 times - twice before and once after 1 April 2001 - your pension calculation would include:
- your own contributions before the first marriage;
- either your own contributions, or your first husband’s contributions;
- your own contribution record after the end of the first marriage and before the second marriage;
- either your own contributions or your second husband’s contributions; and
- your own contributions after the end of the second marriage up to your pension age.
Part Eight - The Married Woman’s Option
To qualify for the married woman’s option you have to satisfy 2 conditions. These are:
- the date of marriage for your current marriage is before 1 April 2001; and
- the date you first become liable to pay contributions to the Jersey Social Security scheme is before 1 April 2001.
If you satisfy both these conditions you have the choice of paying or not paying contributions.
If you choose not to pay contributions:
- primary contributions will not be deducted from your wages if you work for an employer;
- you do not have to pay Class 2 contributions when you do not work for an employer;
- you will not be covered for contributory benefits
and - you will have to rely on your husband’s contribution record for your pension.
How do I register my choice?
If you do not want to pay contributions you must fill in a married woman’s election form. Send the form and a copy of your marriage certificate to us as soon as possible.
If you have a blue Social Security registration card it must be sent back to us. If you are working, or intend to work please tell us. We will then send you a red card. The colour of the card tells your employer whether to deduct contributions or not.
Part Nine - 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 have any questions or suggestions about the information contained in this leaflet.
Our staff are here to help you, please telephone us on 445505 or call into our office.
Please note: calls to the Department may be monitored for training purposes.
Other leaflets that may be of interest
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.
