As an employer you must pay the primary and secondary contributions for all employees who:
- work eight or more hours a week
- hold a registration card marked FR1 on the back
- are aged between the compulsory school leaving age and 65 years old – contributions are due from the first month in which a person reaches compulsory school leaving age until the end of the month is which the person reaches 65
- are labour only sub-contractors
These employees must be shown on your monthly schedule.
The primary contribution
This is 6% of your employee's monthly (or weekly) gross wage. You should deduct this part from the employee's gross wages before you pay them.
The secondary contribution
This is 6.5% of your employee's monthly (or weekly) gross wage up to the Standard Earnings Limit (SEL) for the year. For any wages paid above the SEL, 2% must be paid by the employer up to the Upper Earnings Limit (UEL).
Employees who hold a card marked XR1
If an employee holds a registration card marked on the back as XR1, this means that 6% is not to be deducted from their wages and they do not have to pay any primary contributions. You, as the employer, will still have to pay 6.5% secondary contributions for that employee.
The following people may have a registration card marked XR1:
- widows or widowers receiving Survivor’s Benefit, Widow’s Benefit or Widowed Father’s Allowance
- married women who have elected not to pay contributions
- people over pension age (for some women this is 60)
Employees for who you do not have to pay contributions
You do not have to hold a registration card for the following employees, and they should not be shown on the schedule:
- employees working less then eight hours in a week
- people under compulsory school leaving age
Compulsory school leaving age is 30 June in the school year in which the person reaches 16. The school year runs from 1 September to 31 August.
Employees working outside the Island
Contributions continue to be payable to Jersey when an employee works temporarily outside the Island in continuation of Jersey employment. If in any doubt please contact the Contributions and Enforcement Zone.
Employees with more than one job with the same employer
The earnings from each job will be added together for the purpose of assessing the contributions payable.
Weekly wages £
Single service agreements
A single service agreement can be set up when two or more employers are employing the same person.
If the employers agree to it, one of them can complete a schedule every quarter and combine the earnings from all the jobs.
This can be a particularly beneficial arrangement for employees who work under eight hours a week for more than one employer.
This is a private arrangement between employers.
A card is given to every person when they register with us at the Social Security Department. The card shows the person’s:
- social security number
- first name
- other initials
From July 2013, this card will also show their residential and work status.
Who should hold the registration card?
If the registration card shows residential and work status the employee should retain it. However, the employer should take a photocopy of both the card and ID for all new employees.
For existing employees the old style registration card, that does not show work status, should be retained by the employer.
As an employer you commit an offence if you have not obtained a copy of an employee's registration card, together with photo ID, and you:
- pay any wages to the employee, or
- employ the person for two or more working days
Why must the employer keep a copy of the registration card?
Because each card shows the name and social security number of each individual, and it is vital to have this information for use on the schedule.
The reference code on the back of the card tells you whether you should deduct contributions from the employee:
- FR1 - both primary and secondary contributions are payable
- XR1 - only the secondary contribution is payable
Can a person have more than one registration card?
Yes, if it is lost or defaced.
What happens if an employee changes their name?
If an employee changes their name through marriage, civil partnership or choice then they must come in and bring their registration card and documentation (i.e. a marriage certificate). We will change their details on our system and give them a new registration card with their new name. They should then show the card to you and once you have a copy of the new card you can change their name on the schedule.
What happens if an employee changes their liability?
If an employee changes their liability they will have to come in and change their card.
Until you are shown and have a copy of the new card you must still pay (or not pay) contributions as if you were holding the old card.
How to register and why
Labour-only contractors and sub-contractors