5% Increase in Social Insurance Cap Ahead of Budget is Ominous

5% Increase in Social Insurance Cap Ahead of Budget is Ominous

The Government, in the gazette of 12 June, has implemented a 5 % increase in the Social Insurance Cap for both employees and employers effective as from 1 July 2025.

Roy Clinton MP the GSD Shadow Minster for Public Finance stated the following:

“In the 2024 Budget, the Chief Minister announced a 5% increase in the Social Insurance Cap for 2024/25 in order to ‘stabilise the fund’. The unannounced increase, by way of gazette, of a further 5% outside the Budget cycle is ominous at a time when costs for both businesses and employees continue to increase.

I look forward to hearing from the Chief Minister in his 2025 Budget address the reasons for this latest increase together with his projections for the level of contributions needed to fund the Group Practice Medical Scheme and the solvency of the statutory benefits fund.”