The reason you make social security contributions payments is to give yourself insurance protection under the Social Insurance Scheme.
Generally speaking, the Social Insurance Scheme applies to all persons in Guernsey, Alderney, Herm and Jethou who are over school leaving age. You will pay contributions into the Social Insurance Scheme and be entitled to receive benefits according to whether or not you work and how you are employed.
There are three groups or 'Classes' of person under the Scheme. More information about two of the Classes and conditions is provided below, if you are not employed or self-employed you will need information about Class 3 Non-employed persons which can be found in the Useful Pages section of this page. If you are looking for information regarding the rates of old age pension, you will find this here.
Contribution Rate Changes from 1 January 2022
The States has resolved to increase the percentage contribution rates in order to ensure the sustainable funding of both the Guernsey Insurance Fund and the Long-term Care Fund. The Guernsey Insurance Fund provides financial assistance during old age, bereavement, incapacity, unemployment, maternity/early parenthood and death. The Long-term Care Fund is designed to assist with the costs of care in private nursing and residential homes.
For employers and employees (Class 1 contributors), the percentage contribution rate into the Insurance Fund will increase by 0.1% each (i.e. 0.2% combined) per year for ten years. Self-employed and non-employed under pension age will be similarly affected.
The States also resolved to increase the percentage contribution rate for employees, self-employed persons, and non-employed persons (under and over pension age) into the Long-term Care Insurance Fund by 0.1% each per year for four years.
Rates will be reviewed annually to consider whether the plan should be adjusted, taking into account the economic circumstances of the island and other relevant factors at that time. The Policy Letter that put forward these proposals can be accessed at Contributory Benefits and Contribution Rates for 2022 - States of Guernsey (gov.gg).
If you're an employer, you'll find more information on Contributions in the Employers Guide, on our Information for Employers page.
Class 1 - Employed persons
- An employed person, for the purposes of the Social Insurance Scheme, is anyone who is gainfully occupied in employment under a contract of service.
- However, there are people who are not under a contract of service, but must still be treated as employed persons. For example people who are working in a 'labour only' capacity within the construction or building industries. For more information on labour only contractors and sub-contractors please download the following
labour only contractors and sub-contractors leaflet [148kb].
- Where the person is supplied by a third party and receives payment from that party, the third party will be treated as the employer.
- In all other cases the employer will be the person with whom the worker is contracted to do the work. These employees are required to pay Class 1 contributions.
- In general, contributions are required from both the employer and employee in respect of any employed person who is over school-leaving age and under pension age. The percentage rates of contributions required are shown in the table below:
2023 Employed contribution rates Employer Employee Full percentage rate (payable in respect of employees under pensionable age)
6.8% 7.0% Employer only contributions (payable in respect of employees of pensionable age or over)
6.8% 0.00% - The rates of contributions (calculated as a percentage of gross earnings) required for employed persons and their employers are shown in the table below:
Upper Earnings Limit Lower Earnings Limit 2023 2022 2023 2022 Weekly £3,240.00 £3,027.00 £163.00 £152.00 Monthly £14,040.00 £13,117.00 £706.33 £658.67 - For more information please download the
- If you have recently become employed please download then complete and return an
- If you require a contributions record, please download then complete and return the
Class 2 - Self-employed persons
- Those people who are in business for themselves and other people who are working for gain but are not under the control of an employer are in this class.
- Further information for self-employed persons is available to download in the
- If you have recently become self-employed or wish to become self-employed, please download and complete the
- The table below shows the contribution rates for self-employed persons:
Contribution rates for (Class 2) self-employed persons Self-employed contributions 2023 2022 Yearly percentage 11.60% 11.30% Upper earnings limit (annual) £168,480 £157,404.00 maximum weekly rate* £375.84 £342.05 Lower earnings limit (annual) £8,476.00 £7,904.00 minimum weekly rate £18.91 £17.18 - * Persons classified as self-employed are automatically liable to pay contributions at the maximum rate, unless they apply to have their rate of contribution assessed upon their earnings. In order to have your rate of contribution assessed upon your earnings you will need to make an
If you are not sure if you should be classified as an employed person or a self-employed person, further information can be downloaded from the employed or self-employed leaflet [196kb].
More information about how to make a social security contribution payment is provided in the Useful Pages section.
Social Security information for employers is provided in the Business, Charity and Not-for-profit section of this website.
