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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Proposal to cut Social Security Contributions

29 July 2020

Assistant Social Security Minister, Deputy Scott Wickenden, has lodged a proposition to cut employees’ Social Security contributions by 2%. The measure will be debated by the States Assembly in September. 

The reduction in employee Social Security contributions has been introduced as part of the £150 million fiscal stimulus package, which aims to support Islanders and businesses to recover from the economic impact of COVID-19.

If approved, the 2% cut in rates will apply from 1 October 2020 until 30 June 2021.  Self-employed people will also pay 2% less under the proposal.

The reduced rates for both employees and self-employed people will apply to earnings of up to £4,558 per month. 

Deputy Scott Wickenden, Assistant Minister for Social Security said: “These measures will increase the take-home pay of approximately 55,000 workers and self-employed Islanders. 

“This cut in contributions enables Islanders to have a little extra each month to spend in the local economy and I urge Islanders to support Jersey businesses and services over the coming months to help us recover as quickly as possible.

Other fiscal stimulus measures include the Spend Local payments to low income households and a £100 card/voucher which will be issued to every Islander in September.

The proposition is available on the States Assembly website. 
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