Global Daily Tax News, Guernsey Lawmakers Agree Social Security Tax Hikes, (Dec 5, 2025)

Guernsey lawmakers have approved The Social Insurance (Rates of Contributions and Benefits, etc.) Ordinance, 2025.

This Ordinance sets the percentage contribution rates of Class 1 to 3 social insurance contributions for 2026.

The rates of contributions are increased for employers to 7.1 percent (from seven percent), for employees to 7.5 percent (from 7.4 percent), for self-employed people to 12.4 percent (from 12.2 percent), and non-employed persons under pension age to 11.8 percent (from 11.6 percent).

The rates remain the same for non-employed persons over pension age (3.8 percent).

It also sets the upper and lower income limits, amounts of contributions and the Class 3 income allowance and increases the amounts of contributory social insurance benefits as set out in the First Schedule. All limits and benefits are increased by approximately 4.2 percent.

The Ordinance's provisions will generally be effective from January 1, 2026.