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Information for class 1 employed and class 2 self-employed people

Contact Us - Revenue Service

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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 people in Guernsey, Alderney, Herm and Jethou who are over school leaving age. They pay contributions into the social insurance scheme so that they are entitled to receive benefits according to whether or not they worked and how they  were employed.

There are three groups or 'classes' under the scheme - class 1 is for employed people and employers, class 2 is for self-employed people and class 3 is for non-employed people.

More information about employed and self-employed contributions is provided below. If you are looking for information regarding the rates of old age pension, you will find this on the States pension page.

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 page.

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 see the leaflet in the downlaods section of this page.
    • 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 rates chart in the downloads section of this page.
    •  
  • 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.
    • If you have recently become self-employed or wish to become self-employed, please complete the commencing self employment form in the downloads section of this page.
    • The table below shows the contribution rates for self-employed persons:
    • 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 pdf icon application to pay earnings related contributions [580kb].

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 pdf icon 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.

 

Downloads

Social Security Contributions 2024 rates and limits Commencing self-employment Labour-only contractors & sub-contractors - Leaflet 59 Benefit Payment & Contribution Rates - Leaflet 50

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