Employment Cost Calculator for Jersey
Calculate the total cost of employing someone in Jersey, including taxes, benefits, and our management fee.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Income Tax Instalment Scheme (ITIS) | Employee's effective rate (default 22% if no rate provided) | Employee's gross pay |
| Social Security (Secondary) | 6.5% up to Standard Earnings Limit (SEL); 2.5% between SEL and Upper Earnings Limit (UEL) | Employee's earnings |
| Long-Term Care Tax | 1.5% | Employee's gross earnings up to the Social Security UEL |
Filing & Compliance
- Register as an employer.
- Deduct ITIS and Social Security from employee wages and pay to Revenue Jersey monthly.
- Submit a combined employer return (including manpower information) and provide employees with annual statements.
In Jersey, employee tax deductions primarily consist of income tax and social security contributions.
Income Tax
- Standard Rate: The standard personal income tax rate is 20%. This applies to most residents.
- High Net Worth Individuals: For those approved as 2(1)(e) residents, a tiered system applies:
- 20% on the first £1,250,000 of worldwide income.
- 1% on any income exceeding £1,250,000.
- 20% on income derived from Jersey property or dividends from companies receiving Jersey property income.
- A minimum annual income tax contribution of £250,000 is required.
- Income Tax Instalment System (ITIS): Employees and company directors have tax deducted directly from their salaries through ITIS. An "effective rate" is provided, representing the percentage deducted from gross pay.
Social Security Contributions
- Class 1 Contributions: For employees working 8 hours or more per week:
- Employee Contribution: 6% of monthly earnings up to a cap of £348 (as of December 2025).
- Employer Contribution: 6.5% on earnings up to £5,800 per month, plus 2.5% on earnings between £5,800 and £26,442 per month.
- Lower Earnings Limit: A minimum earnings limit of £1,240 per year ensures full coverage for pension and benefit purposes. Contributions cease at pension age.
- Class 2 Contributions: Applicable to non-employed residents.
Other Considerations
- Worldwide Income: Jersey residents are taxed on their worldwide income.
- Deductible Expenses: Certain work-related expenses not reimbursed by the employer can be deducted. Specific allowances exist for business travel and vehicle use.
- Tax Return: An annual income tax return is required, declaring all income and claiming eligible deductions.
Important Note: This information is current as of February 5, 2025, and is subject to change. Consulting a tax professional is always recommended for personalized advice.
