Payroll and Benefits Guide Jersey
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 6.50% | Social Security, applied on salary up to 5,800 GBP monthly |
| 2.50% | Social Security upper tier, applied on salary between 5,800 to 26,442 GBP monthly |
| 6.50% | Total Employment Cost |
| Employee Payroll Contributions | |
| 6.00% | Social Security, applied on salary up to 5,800 GBP monthly |
| 1.50% | Long-Term Care Fund |
| 7.50% | Total Employment Cost |
| Income Tax | |
| 20% | Standard rate |
| Allowances and Exemptions | |
| 3,850 GBP per child | Child allowance |
| 5,570 GBP | Single parent allowance |
| 20,700 GBP | Exemption limit for a single person |
| 33,200 | Exemption limit for a married person/civil partner |
Employer taxes
Working Hours
General
In Jersey, there is no statutory limit on daily or weekly working hours. However, full-time employees typically work an average of 39.7 hours per week.
Overtime
The law sets the maximum total working time, including overtime, aligning with health and safety principles.
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Maximum Average Weekly Hours: A worker’s average working time, including overtime (extra hours), must not exceed 48 hours per week.
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Averaging Period: This average is calculated over a standard reference period of 17 consecutive weeks.
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Opt-Out: Workers aged 18 or over may voluntarily agree in writing to opt out of the 48-hour average weekly limit.
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Rest Periods (Mandatory):
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Daily Rest: Employees are entitled to 11 consecutive hours of rest in each 24-hour period.
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Weekly Rest: Employees are entitled to at least 24 uninterrupted hours of rest in every seven-day period (or 48 hours over 14 days, by agreement).
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In-Work Break: A 20-minute uninterrupted rest break is mandatory if the employee works for 6 hours or more.
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Overtime Compensation (Contractual Obligation)
Overtime is defined as work performed beyond the employee’s normal contractual hours. The Law does not set a universal minimum premium rate for this work.
| Compensation Detail | Formal Governmental Requirement |
| Minimum Pay Rate | No statutory minimum premium rate (e.g., 150%) is set for general overtime. |
| Source of Rates | Compensation is determined entirely by the employment contract or collective agreement. |
| Compensation Floor | All hours worked, including overtime, must be compensated at a rate that is at least the Statutory Minimum Wage ($\text{\textsterling}11.64$ per hour, as of January 2025). Overtime pay cannot be used to meet the minimum wage requirement. |
| Compensation Method | Compensation can be paid in cash at the agreed rate or granted as time off in lieu (TOIL), provided this is clearly stipulated in the contract. |
Contractual Practice Note:
While not legally mandated, many employers in Jersey contractually pay enhanced rates for overtime, such as 1.5 times (time and a half) for weekday overtime and 2 times (double time) for work on Sundays or Public Holidays.
Payroll
Payroll Cycle
The payroll cycle can vary depending on the employer. However, the most common payroll cycles Monthly. It is also possible to pay on a Weekly or Bi-weekly set up.
13th Salary
There are no specific regulations mandating the payment of 13th or 14th salaries. These additional salaries are not a legal requirement in Jersey.
Leave
Annual Leave (vacation)
The entitlement to annual leave is usually determined by the employment contract between the employer and the employee. Under the law full time workers must receive a minimum of 3 weeks of paid annual leave per year, plus paid time off on public and bank holidays, though it is common to provide 25 days of vacation plus public holidays. Part-time employees receive a pro-rated amount based on their working days.
PTO Carryover
In Jersey, statutory annual leave cannot be forfeited. Leave should normally be taken in the leave year, but carryover is allowed in limited situations (e.g., sickness or where the employer didn’t allow leave). Unused statutory leave must be paid out on termination, and a blanket “use-it-or-lose-it” policy is not lawful.
Public Holidays
In Jersey, if a public holiday falls on a weekend, it is typically observed on the following Monday. An exception is Liberation Day (9th May), which, if it falls on a Saturday, remains a public holiday, and employees working that day are entitled to an alternative day off in lieu. Employers can either give the day off with pay or provide a paid day off later.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 4 May 2026 | Monday | May Day Holiday (Early May Bank Holiday) | Standard holiday |
| 9 May 2026 | Saturday | Liberation Day | Standard holiday |
| 25 May 2026 | Monday | Spring Bank Holiday | Standard holiday |
| 31 August 2026 | Monday | Summer Bank Holiday | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | |
| 28 December 2026 | Monday | Boxing Day Holiday (Substitute Day) |
Sick Leave
In Jersey, there is no statutory requirement for employers to provide paid sick leave. This means that any sick pay entitlement is typically outlined in the employee’s contract of employment. If an employer does offer sick pay, the terms should clearly state how much sick pay is provided and for how long.
However, employees who are unable to work due to illness or injury may be eligible for sickness benefit through the Social Security systems Short Term Incapacity Allowance (STIA) for a minimum of two days and up to a maximum of 364 days. Under STIA, workers might be eligible to claim sick leave pay at a weekly rate of £283.01 (£40.43 daily rate), based on the employee’s Social Security contributions. To claim, workers must submit a medical certificate from their doctor.
Maternity Leave
Pregnant employees are entitled to paid time off for ante-natal appointments. Parental leave can start no earlier than 11 weeks before the expected date of childbirth and lasts up to 26 weeks, with the first 6 weeks paid by Social Security.
Employees must notify their employer in writing before the end of the 15th week before the expected date of birth (or as soon as practicable) about the pregnancy, expected week of childbirth, and intended start date of parental leave.
Paternity Leave
Fathers can take leave under the Parental Leave entitlement.
Parental Leave
All parents can take up to 26 weeks of parental leave, but only 2 weeks are paid. This leave can be taken in up to three blocks within a year of the child’s birth. The cost of the leave, is covered by the Social Security system through the Parental Allowance.
Employer taxes
Termination
Termination Process
- Termination can occur due to redundancy, misconduct, or other valid reasons as outlined in the employment contract and the Employment Law.
- Employers must follow a fair process, including providing written notice and reasons for termination.
- Employees have the right to appeal against the termination.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Employer must pay wages at “regular intervals of not more than one month” unless otherwise agreed. | When employment ends, all wages and “any monetary sums which by virtue of this Law are due to the employee” must be paid on or before the next pay-day following the contract-end. | Wages may be paid by bank account transfer, cheque, postal order or money order; default is payment to the employee unless otherwise agreed in writing. |
Notice Period
- During Probation: 1 week’s notice.
- Less than 26 weeks of employment: 1 week’s notice.
- More than 26 weeks but less than 5 years: 2 weeks’ notice.
- More than 5 years: 4 weeks’ notice.
Severance
Entitlement to severance pay is only required in termination scenarios, such as redundancy for 0employees with 2 years or more of continuous service. The minimum required payment is 1 week’s pay per year of service capped at a maximum of £1,000 per week.
Probation Period
In Jersey, the probation period for new employees is typically determined by the employer and specified in the employment contract. However, it is common for probation periods to last between three to six months.
Immigration
- Eligibility: Non-British or Irish individuals require immigration permission to work in Jersey.
- Application: Employers must apply for a work permit for individuals who need immigration permission. The role must meet specific criteria, and the employer must demonstrate compliance with the Control of Housing and Work (Jersey) Law 2012.
- Types of Permits:
- Skilled Work Permits: Granted for up to 3 years, extendable.
- Temporary Work Permits: Issued for up to 9 months for certain sectors, with specific conditions for extension and re-entry.
Minimum Wage
General
The minimum wage in Jersey is 13.00 GBP per hour.
MINIMUM WAGE (PER MONTH)
VAT
Jersey does not have a Value Added Tax (VAT) system.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 4 May 2026 | Monday | May Day Holiday (Early May Bank Holiday) | Standard holiday |
| 9 May 2026 | Saturday | Liberation Day | Standard holiday |
| 25 May 2026 | Monday | Spring Bank Holiday | Standard holiday |
| 31 August 2026 | Monday | Summer Bank Holiday | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | |
| 28 December 2026 | Monday | Boxing Day Holiday (Substitute Day) |
Questions & Answers