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Social security contributions by percentage

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WQ.296/2024

WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY

BY DEPUTY M. TADIER OF ST. BRELADE

QUESTION SUBMITTED ON MONDAY 16th SEPTEMBER 2024 ANSWER TO BE TABLED ON MONDAY 23rd SEPTEMBER 2024

Question

"Will the Minister provide a breakdown of where an individual's social security contributions are allocated, by percentage, including the amount that goes into the States pension fund out of which social security pensions are paid?"

Answer

The Social Security Fund is the fund that pays social security pensions. There is not a separate pension fund contained within the Social Security Fund.

The percentage allocations of an individual's Social Security contributions are established under the Social Security (Jersey) Law 1974 and are set out in paragraph 3 of schedule 1A and paragraph 3 of schedule 1B. The percentages are as follows:

Class 1: (working age employee)

0.8% of the person's earnings that do not exceed the standard monthly earnings limit, allocated to the Health Insurance Fund; and

5.2% of the person's earnings that do not exceed the standard monthly earnings limit allocated to the Social Security Fund.

In addition to the contribution paid by the employee, contributions are also made by the employer and are allocated as follows:

1.2% of the employee's earnings that do not exceed the standard monthly earnings limit, allocated to the Health Insurance Fund;

5.3% of the employee's earnings that do not exceed the standard monthly earnings limit allocated to the Social Security Fund.

2.5% of the employee's earnings that exceed the standard monthly earnings limit but do not exceed the upper monthly earnings limit allocated to the Social Security Fund.

.

Class 2 (working age individuals who are not employed)

 2% of the person's earnings that do not exceed the standard monthly earnings limit, allocated to the Health Insurance Fund;

10.5% of the person's earnings that do not exceed the standard monthly earnings limit allocated to the Social Security Fund.

2.5% of the person's earnings that exceed the standard monthly earnings limit but do not exceed the upper monthly earnings limit allocated to the Social Security Fund.

.

The earnings limits for 2024 are:

standard monthly earnings limit: £5,450

upper monthly earnings limit: £24,850