In July, it was announced that the Government of Jersey would introduce a £150m fiscal stimulus package to help the Jersey economy in the wake of the COVID-19 pandemic.
Following this, the proposal to cut Social Security so that there is a temporarily reduced employee contribution by 2%, from the current 6% down to a new temporary 4%. The reduced rate will be eligible on incomes of up to £4,558 per month. Employer contributions remain unchanged.
If passed in the September States Assembly, the change will come into effect on 1 October 2020, and will last until 30 June 2021.
What Jersey employers need to do – prepare
Employers in Jersey need to temporarily change your payroll system calculations and processes to deduct 2% less contributions from employees from 1st October 2020 up to 30th June 2021.
PAYadvice.UK updated 11/9/2020