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9
WQ.26/2018
WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 30TH JANUARY 2018
Question
What measures, if any, does the Minister have under consideration as part of her review of the Social Security system to make it less regressive and, in particular, to address the following aspects of the current system –
- the fact that the contribution rate for employers and employees falls from a higher rate to a lower one when earnings exceed certain thresholds; and
- the fact that contribution rates are based solely on earned income and do not, for instance, take into account earnings from investment income?
Answer
The Social Security sustainability review is looking at all aspects of the contributory Social Security scheme, which includes the rules for contributions, including the proportion of contributions from employees and employers, the earnings limits to determine the level of contributions and the range of income to be included within the rules for liability as well as the rules for the protection and benefits the scheme provides.
Any potential changes to the contributions rules (including the rate and on what income it is based on) will be considered as part of the next government's strategic and financial planning process.