The upper earning limit has been raised from about �36,000 to �53,664 a year for workers and companies, with the lower limit set at �5,200.

Full contribution rates have been set at 5.5% for employers and 6% for staff.

The changes were agreed by States members in June and follows projected budget deficits of up to �50m when corporation tax is scrapped in 2008.

The non-employed have the same upper income limit and a lower limit of �13,000.