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Jersey Chamber of Commerce

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Category: Local Business News  States of Jersey

Replacing the 8 hour rule with a monetary threshold

Aug 13, 2021


As part of the preparations for simplifying the reporting requirements for employers, the Social Security Minister has lodged proposals to replace the ‘8 hour rule’ with a monetary threshold.

Changing the ‘8 hour rule’

This change will make it easier for employers to correctly record the earnings for Social Security purposes on their monthly return and calculate and deduct the right amount of Social Security contributions from their employees.

New threshold for social security contributions

From 1 January 2022, employers will be required to pay Social Security contributions for any employees with wages at, or above, the minimum earnings threshold for the wage period.

This threshold will replace the “8 hours a week” rule which requires employees and employers to pay Social Security contributions if an employee works for 8 hours in a week or more.

It will be set to an amount equivalent to working 8 hours a week at the minimum wage. The threshold will be set in October each year.

The minimum earnings threshold does not affect how employers administer the employees’ income tax instalment scheme (ITIS) deductions from wages.

 More information about the minimum earnings threshold

If you have any questions about these changes please email [email protected]

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