10 December 2019
Gov.je has released the new Social Security Earnings Limits to be applied to employee pay in Jersey effective from 1 January 2020.
Organisations must pay 2.5% on employee earnings where the earnings fall between £4,558- the Standard Earnings Limit (SEL) and £20,800 – the Upper Earnings Limit (UEL).
The employee must contribute 6% of earnings up to £4,558 and the employer must pay 6.5%.
The table below shows the new threshold rates:
Monthly earnings limit
Amount per month
Upper Earnings Monthly Limit (UEL) Standard Earnings Monthly Limit (SEL) Lower Earnings Monthly Limit (LEL) Minimum rate 2 class 2 contribution
£20,800 £4,558
£968
£975.80 £569.75
Standard Rate
Just as a reminder of the rates to use up until 1 January 2020 and to show some comparison between the two years, the current rates which have been in place since 1 January 2019 are as follows:
The employee must contribute 6% of earnings up to £4,442 and the employer must pay 6.5%.
Monthly earnings limit
Amount per month
Upper Earnings Monthly Limit (UEL) Standard Earnings Monthly Limit (SEL) Lower Earnings Monthly Limit (LEL) Minimum rate 2 class 2 contribution
£14,686 £4,442
£940
£760.13 £555.25
Standard Rate
There is also a calculator online that can be used to assist with the calculations. The 2019 rates will be used on this site up to 15 January 2020 and beyond that point, the 2020 rates will be applied.
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The holiday entitlement calculator is available for use online after being removed earlier this year 18 December 2019 After a brief hiatus, the holiday entitlement calculator is now available to use again and can be located here. It was previously withdrawn for amendment as a result of the outcomes of various tribunal court cases that focused on the topic of holiday pay over the course of the past year. Due to the increase in the popularity of using ‘gig’ workers and employing people on a zero hours basis and a general shift in the nature of working patterns, the concept of holiday pay is no longer a simple and straight forward one and a variety of factors need to be considered before calculating the entitlement that a worker is entitled to. Updated guidance has been published, and there is a caveat within it that states that it is intended to aid the understanding of statutory holiday entitlement calculations, but is not exhaustive and cannot be used to provide definitive answers to individual queries. The advice given is to seek legal advice or to contact ACAS in the event of any uncertainty. The guidance discusses calculating the statutory holiday entitlement for people who work fixed days, those who work fixed / compressed hours, people who work on a casual or irregular basis or who have annualized hours and how to calculate entitlement for shift workers. A major change is that zero hours workers will accrue holiday entitlement based on the dates of their contract and not on the total of the hours or weeks that are worked within that contract.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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