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

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Temporary 2% employee contributions reduction

About the proposal

In July 2020, the Government of Jersey introduced a £150m fiscal stimulus package in order to help the Jersey economy in the wake of the COVID-19 pandemic.

Following this, Social Security employee contributions were temporarily reduced by 2%, from 6% down to 4%. Self-employed people were also be entitled to the 2% reduction. 

The reduced rate was be eligible on incomes of up to £4,558 per month. Employer contributions remained unchanged.

The change was in effect from 1 October 2020 to 30 June 2021.

The 2% reduction helped to boost the local economy by increasing the take-home pay of approximately 55,000 workers and self-employed Islanders.

The proposal can be seen on the States Assembly website.

Why this was proposed

The 2% cut in employee contributions was just one part of the Fiscal Stimulus package that were proposed to enable Islanders to actively spend more money locally, in Jersey’s economy.

Temporary 4% employee contributions

Between 1 October 2020 and 30 June 2021 Social Security employee contributions were temporarily by 2%, from 6% down to 4%. 

  • self-employed people were entitled to the 2% reduction
  • the reduced rate was eligible on incomes of up to £4,558 per month
  • employer contributions remain unchanged

Contributions calculator during the temporary reduction to 4%

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