Guernsey: Pay and benefits

Original and updating author: Rachel Guthrie, Mourant Ozannes

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Summary

• When an employee enters into a legally binding contract with an employer, the employee is entitled to be paid for their service. (See General)
• The employer must provide each employee with a written "statement of pay", containing specified information, when remuneration is paid. (See Payment of wages)
• Other than deductions required by law (notably income tax and social insurance contributions), any deductions from wages must be permitted by the employment contract or agreed specifically by the employer and employee. (See Deductions)
• There are statutory equal pay provisions. (See Equal pay)
• A statutory minimum wage is payable to almost all workers aged 16 or above. (See Minimum wage)
• A state old-age pension is payable from the age of 65, with entitlement depending on the individual's social insurance contribution history. From July 2024, employers will usually have a legal duty to enrol their employees automatically into a new secondary pension scheme, or into another qualifying scheme, although employees can choose to opt out of the scheme. (See Pensions)
• Employers must deduct from each employee's pay the income tax and social insurance contributions that the employee is obliged to pay, and also make employer social insurance contributions. (See Income tax and social security)
• Employees have no statutory right to time off due to sickness or injury, or to be paid by the employer when absent from work for these reasons, although they may be entitled to claim public sickness or invalidity benefits. (See Sick pay)
• Employers may provide benefits in kind under their employment contracts or employees may be able to opt into schemes by way of deductions to their salaries. (See Benefits in kind)