What is social insurance in Gibraltar and how much is deducted from monthly pay?

Question

Accepted Answer

Employees pay 10% of gross earnings, subject to a minimum of £14.33 and a maximum of £40.79 a week (about £62 to £177 a month). Employers pay 18%, subject to £31.97 to £56.22 a week. Because of the caps, most full-time employees pay the flat maximum.
What it is
Social insurance is a compulsory contribution under the Social Security (Insurance) Act that funds state benefits including pensions, maternity allowance and unemployment support. It is payable in every week in which a person works, and is deducted through payroll alongside PAYE.
Current rates
Employee: 10% of gross earnings, minimum £14.33 and maximum £40.79 a week (annual minimum £745.29, maximum £2,121.21; roughly £62.11 to £176.76 a month).
Employer: 18% of gross earnings, minimum £31.97 and maximum £56.22 a week (annual minimum £1,662.57, maximum £2,923.83; roughly £138.55 to £243.65 a month).
Self-employed: 20% of gross earnings, minimum £30.45 and maximum £53.55 a week.
These figures were set by the Social Security (Insurance) Act (Amendment of Contributions) Order 2025 from 1 July 2025. The 2026 Budget announced no changes to social insurance contributions.
How the caps work
The employee maximum is reached at gross weekly earnings of about £408 (around £21,200 a year), so almost every full-time employee on more than the minimum wage pays the flat £40.79 a week. The employer maximum is reached at about £312 a week, so employers in practice pay a flat £56.22 a week for nearly all full-time staff.
The minimum matters for part-timers
The weekly minimum applies regardless of hours, which bears heavily on short-hours work. A worker doing five hours a week at minimum wage still pays the £14.33 employee minimum, a point the Gibraltar Federation of Small Businesses has raised with Government.
Over-60s
Where the employee is 60 or over, or retired at 55 by operation of law, only the employer's share is payable.
Frontier workers
Social insurance follows the place of work, so Spanish residents employed in Gibraltar contribute to the Gibraltar scheme. Special rules apply to posted, detached and multi-state workers.

What is social insurance in Gibraltar and how much is deducted from monthly pay?

Short answer

Detailed answer

Current rates (from 1 July 2025, unchanged in Budget 2026)

How the caps work

Part-time workers

Over-60s