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Social security contributions to be based on 2020

Social security contributions to be based on 2020

Friday 11 September 2020

Social security contributions to be based on 2020

Friday 11 September 2020


Self-employed workers and unemployed people can choose to have the way their social security contributions are calculated changed, in order to offset the difficulties faced by lockdown and the ongoing pandemic.

The change, which is part of the ongoing transformation of the Revenue Service, will see contributions based on the current year’s income, instead of the two years prior which is currently the case.

However, those whose income level is below that of 2018 are able to bring the change forward to 1 January 2020.

“We know this year has been very difficult for many of the Revenue Services’ customers, who have seen their normal income drop significantly as a result of Covid-19 and the important restrictions that were brought in to protect the community,” said ESC President Michelle Le Clerc.

“We really want to help, which is why we’re now offering them the choice to base this year’s contributions on this year’s income, which should mean a lower payment for those whose income has fallen.”

According to the States’ Community Monitoring Report, only 78% of self-employed Islanders were able to fully return to work – and only 69% of those were receiving their normal pay.

The Revenue Service will be writing to customers this week with details of the new contribution rates.

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