From January 2022, the Jersey 8 hour rule will be replaced with a financial limit. This limit will be equivalent to 8 hours at the minimum wage that is in place at the start of the year.

For weekly paid employees there will be a weekly threshold based on 8 hours per week at the minimum wage. The employer will need to determine, each week, if the employee has reached that threshold and deduct contributions accordingly.

It is possible that an employee may exceed the threshold in some weeks during a month and not others.  The Combined Employer Return (due January 2022) will require the earnings for the entire month to be declared for tax purposes but for contributions purposes only the earnings for the weeks where contributions have been deducted should be reported.

For monthly paid employees earnings will only need to be declared for social security purposes where the monthly threshold is reached.

Statistics Jersey have today published the December 2020 Labour Market report. Jersey’s labour market report is published every six months and covers key aspects of the job market for both the private and public sector.

In December 2020:

• the total number of jobs was 60,000. There was an annual decrease of 1,380 jobs (2.2%) since December 2019, the largest December decrease since at least 1998

• there were 51,470 jobs in the private sector. This was an annual decrease of 1,790 jobs (3.4%), its largest recorded decrease in December

• there were 8,530 jobs in the public sector. This was an annual increase of 400 jobs (4.9%)

At a sectoral level:

• seven sectors saw annual decreases in jobs; the largest decrease was of 1,040 jobs in hotels, restaurants and bars, which was the second-largest change recorded in any sector to date (with the largest being the annual decrease of 1,700 recorded by this sector in June 2020)

• the annual increase of 400 jobs in the public sector was driven by an increase of 330 in the number of Government of Jersey (GOJ) core employees (permanent and fixed term employees), which includes staff employed in response to the COVID-19 pandemic

Source: Government Jersey website (December Labour Market Report Published (gov.je))

An extensive package of measures to address the cost-of-living crisis, which formed part of the Chief Minister’s 100 day plan has been passed.

The aim of this package is to put almost £15 million back into Islanders’ pockets this year and almost £42 million in 2023.

The Minister for Treasury and Resources, Deputy Ian Gorst, said: “This mini budget will help individuals and families with their budgets in this cost of living crisis. I am pleased with the work we have done to help people with these broad measures at this time of need in the community.”

Some of the changes passed as part of the Mini budget will directly impact payroll in Jersey. A reduction from 6% to 4% for employee Social Security contributions, came into effect on the 1st of October 2022 for 3 months (ending on the 31st of December 2022).

Our clients won’t need to do anything, as the update to social security will go through to our databases automatically.

Also approved as part of the Mini budget was an above inflation increase of 12% in Income Tax thresholds and allowances, including Child Allowances, Additional Allowance and Child Care Tax Relief. From 1 January 2023 Income tax threshold for a single person will be raised from £16,550 to £18,550.

We will also be updating Jersey databases to reflect the increase in income tax thresholds from the 1st of January 2023 onward and will let our clients know if any action is required.

You can find more information about the Mini budget through the Government of Jersey website: https://www.gov.je/News/2022/Pages/MiniBudgetQandA.aspx

Source: Government of Jersey News Release.