Guernsey Chamber of Commerce has issued a formal member briefing raising concerns about proposed Social Security reforms included within the Government’s GST+ tax reform package.
The Chamber is urging local businesses to engage with the proposals before decisions are made, warning that the changes could place a significant additional burden on employers.
According to the Chamber, the reforms are being presented as delivering a net £5m, but in practice consist of £12m of reductions offset against £17m in additional contributions, with most of the increase falling on employers.
Under the proposals, employer Social Security contribution rates would rise from 7.1% in 2026 to 8.0% under the tax reform package, alongside an additional 2.5% levy on income between the Upper Earnings Limit and £250,000.
The Chamber also highlighted that, unlike employees and the self-employed, employers would not benefit from any allowances under the revised structure. It said previously agreed rate increases would also be accelerated and combined with additional levies.
Concerns have also been raised around implementation, with the Chamber noting that payroll system changes would be required despite no existing system currently being able to deliver the proposed structure.
The Chamber is calling on the Government to provide a clearer breakdown of the proposed £17m increase in contributions, greater transparency around which elements had already been agreed and which are new, predictable phasing of any changes, and a full impact assessment on Guernsey businesses.
Chamber Director Diane de Garis (pictured) said: “We support a sustainable Social Security system and fair treatment of income. But what is being proposed places a significant ongoing burden on Guernsey employers, with insufficient transparency about what is new versus what was already planned. Businesses need predictability. This package, as currently structured, does not provide it.”
