In Guernsey, the range of mandatory employee benefits is limited compared to many other European jurisdictions. The key mandatory benefits employees in Guernsey are entitled to are outlined below:

Social Security

Guernsey operates a social security scheme that provides benefits for various contingencies. Both employers and employees contribute to the scheme based on a percentage of the employee's gross earnings.

Contributions

• Employee Contribution: The current employee contribution rate stands at 7.2% of gross pay (as of April 2024).
• Employer Contribution: Employers contribute 6.9% of the employee's gross pay.

Benefits Covered

Social security contributions cover various benefits, including:

• Old-age pensions
• Sickness benefits
• Incapacity benefits
• Maternity benefits
• Occupational accident/illness benefits
• Unemployment benefits

In Guernsey, employers offer a variety of optional employee benefits to attract and retain top talent. These benefits can be financial or non-financial, and they can be tailored to the specific needs of the employee and the employer.

Financial Benefits

• Private health insurance: This can help employees cover the costs of medical care, including hospitalization, surgery, and prescription drugs.
• Dental insurance: This can help employees cover the costs of dental care, such as cleanings, fillings, and crowns.
• Vision insurance: This can help employees cover the costs of eye care, such as eyeglasses and contact lenses.
• Life insurance: This can provide financial security for employees' families in the event of their death.
• Disability insurance: This can provide employees with income if they are unable to work due to illness or injury.
• Profit sharing: This allows employees to share in the profits of the company.
• Bonuses: These are one-time payments that are often based on performance.

Non-Financial Benefits

• Paid time off: This includes vacation days, sick days, and personal days.
• Flexible work arrangements: This can include telecommuting, flexible hours, and compressed workweeks.
• Childcare assistance: This can help employees cover the costs of childcare.
• Educational assistance: This can help employees pay for tuition and other educational expenses.
• Employee discounts: This can give employees discounts on products and services from the company or from other businesses.
• Wellness programs: These programs can help employees improve their physical and mental health.
• Social events: These events can help employees build relationships with their colleagues and have fun outside of work.

In Guernsey, there is no mandatory private health insurance requirement for employers. However, under the Guernsey Health and Safety at Work (Guernsey) Ordinance, 2012, employers do have a responsibility to provide a safe working environment and mitigate health and safety risks. This may involve offering some level of health insurance, particularly for high-risk professions.

Employer's Duty of Care

The ordinance requires employers to take reasonable steps to ensure the health, safety, and welfare of their employees at work. This includes providing appropriate personal protective equipment (PPE) and a safe working environment.

Private vs. Public Healthcare

Guernsey operates a two-tier healthcare system with a free public option and a private system. Residents can access basic medical services through the States of Guernsey Health Service. Private health insurance can provide additional coverage and faster access to specialists.

Employee Considerations

While not mandatory, employers offering private health insurance can be a significant perk for attracting and retaining talent. Additionally, some industries may have specific health insurance needs for employees due to the nature of the work.

In essence, private health insurance is not mandatory for employees in Guernsey. However, employers have a duty to provide a safe working environment under health and safety regulations. Offering private health insurance can be a competitive advantage for employers.

In Guernsey, employees have access to two main types of retirement plans: Employer-Sponsored Pension Schemes and Personal Retirement Savings.

Employer-Sponsored Pension Schemes

There are two primary types of employer-sponsored pension schemes:

• Defined Contribution (DC) Schemes: This is the most common type of employer-sponsored plan in Guernsey. In a DC scheme, both the employee and employer contribute a set percentage of the employee's salary into an individual pension pot. The value of the pot at retirement will depend on the amount contributed, investment performance, and fees.

• Your Island Pension (YIP): This is a government-backed default secondary pension scheme launched in January 2023. Employers who are not offering a qualifying scheme can automatically enroll their employees into YIP. YIP is a DC scheme with a focus on low cost and flexibility.

Personal Retirement Savings

For individuals who are not automatically enrolled in a workplace pension scheme, there are still options for saving for retirement personally. The Guernsey government provides guidance on available options such as Personal Pension Plans (PPPs) offered by various financial institutions.