Draft Social Security Law (Jersey) Amendment Regulations 202- (P.92/2025): amendment

STATES OF JERSEY

DRAFT SOCIAL SECURITY LAW (JERSEY) AMENDMENT REGULATIONS 202- (P.92/2025): AMENDMENT

Lodged au Greffe on 11th November 2025 by Deputy Sir P.M. Bailhache of St. Clement Earliest date for debate: 25th November 2025

STATES GREFFE

DRAFT SOCIAL SECURITY LAW (JERSEY) AMENDMENT REGULATIONS 202- (P.92/2025): AMENDMENT

1  PAGE 7, REGULATION 2 –

(1)  After Regulation 2 insert –

3  Schedule 1A (Class 1 minimum earnings threshold, factors and

contribution rates) amended

1. This Regulation amends Schedule 1A.
2. In paragraph 3(1) –
   1. in clause (a), for "0.8%" there is substituted "1%";
   2. in clause (b), for "5.2%" there is substituted "5%".
3. In paragraph 3(2) –

1. in clause (a), for "1.2%" there is substituted "1.5%";
2. in clause (b), for "5.3%" there is substituted "5%".

4  Schedule 1B (Class 2 factors and contribution rates) amended

1. This Regulation amends Schedule 1B.
2. In paragraph 3 –
   1. in clause (a), for "2%" there is substituted "2.5%";
   2. in clause (b), for "10.5%" there is substituted "10%".
3. In paragraph 4(1) –

1. in clause (a), for "2%" there is substituted "2.5%";
2. in clause (b), for "10.5%" there is substituted "10%".

(2)  Renumber the subsequent Regulation accordingly.

2  PAGE 8, REGULATION 3 –

For Regulation 3 (renumbered as Regulation 5) substitute –

5  Citation and commencement

1. These  Regulations  may  be  cited  as  the  Social  Security  Law  (Jersey) Amendment Regulations 202-.
2. Regulations 1, 2 and 5 come into force 7 days after they are made.
3. Regulations 3 and 4 come into force on 1 January 2026.

DEPUTY SIR P.M. BAILHACHE OF ST. CLEMENT

REPORT

This amendment gives legislative effect to the  second amendment to the Proposed Budget (Government Plan) 2026-29 in the event that it should be adopted by the States. In short, the purpose is to increase the specified allocation to the Health Insurance Fund of contributions made by employers and employees under the Social Security (Jersey) Law 1974 from 2% to 2.5%. The amount contributed by employers and employees will not change. The purpose is more fully described in the report to the second amendment.

Financial and staffing implications

The amendment does not change the rates of class 1 and class 2 contributions paid by employees or employers, and there is therefore no impact on the total forecast social security contributions paid.

The amendment does change the proportion of total social security contributions made to the Health Insurance Fund and Social Security Fund, increasing the proportion paid into the Health Insurance Fund and reducing the proportion paid into the Social Security Fund. The proportion paid into the Health Insurance Fund is estimated to increase the closing balance of the Fund to £125 million by 2029, compared to £61 million in the proposed Budget, and reduce the balance of the Social Security Fund to £70 million compared to £128 million in the proposed Budget.

The increased contributions will benefit the longer-term sustainability of the Health Insurance Fund, assuming no further policy changes to increase expenditure from the Fund. This will also have a longer-term impact on the sustainability of the Social Security Fund with drawdowns from the Social Security (Reserve) Fund likely to be required to offset the reduction in contributions paid into the Social Security Fund.

The longer-term implications will be considered as part of the actuarial reviews into the Social Security Fund and Health Insurance Fund due to be published in 2026.

There are no staffing implications as a result of this amendment. Children's Rights Impact Assessment

I consider that this amendment has no direct or indirect impact on children and that the duty to have due regard to the UN Convention on the Rights of the Child does not arise. Accordingly, a Children's Rights Impact Assessment is not required under the Children (Convention Rights) (Jersey) Law 2022.