DETAILS of a £20 million support package aimed at helping employers transition to a living wage over the next two years have been unveiled by the government.
The minimum wage is due to increase from its current rate of £11.64 to £13 per hour in April next year, with the government ultimately planning to raise the minimum wage to around two-thirds of median earnings by 2026.
Social Security Minister Lyndsay Feltham said: “The transition to a living wage is an important priority of this government, as it directly supports many in our community who are most likely to be struggling with the cost of living.”
Over the next two years, the £20m support package will include a £6m “productivity boost” via the government’s productivity support scheme, a £7m investment in the visitor economy and hospitality industry, £3m for training investment, and more than £2m in additional support for the rural and marine economy.
Economic Development Minister Kirsten Morel said the money would “help organisations invest in themselves and help the Island move to a more productive and resilient economy”.
Funding for this initiative is part of the government’s nearly £1.3 billion proposed Budget for the coming year, which focuses on addressing cost-of-living pressures for Islanders.
The draft Budget, which was published earlier this month, stated that support measures had been designed “to improve the standard of living for workers while promoting sustainable business practices”.
The announcement follows warnings from Jersey’s business community that increasing the minimum wage to £13 per hour could lead to business closures or reduced operating hours.
Chamber of Commerce chief executive Murray Norton said in June that business leaders were “very concerned and shocked at that figure and just how sustainable it will be for their business”.
He also pointed out that the proposed increase would represent a 69% rise in the minimum wage since 2021.
Mr Norton added: “The concerns are that the inevitable price rises will make Jersey a less competitive destination for visitors no matter how much we throw at marketing Jersey.”
Tim Crowley, chair of the Chamber’s visitor economy committee, also questioned whether the living wage would benefit its intended recipients, particularly in sectors with short-term contracts where accommodation and food were provided.
