Social Security Minister Susie Pinel had asked the Employment Forum to review the minimum wage and recommend the highest rate it can. She will consider the latest suggestions and, should she agree, lodge a proposition for debate later this year.
The proposed increase would raise the minimum wage by 32p per hour – the equivalent of an additional £12.80 for Islanders working a 40-hour week. Any increase to the minimum wage would apply to all workers aged 16 and over and would come into effect from 1 April 2018.
Helen Ruelle, chairman of the Employment Forum said: ‘We are very grateful to everyone who took the time to respond to the consultation this year. Having reviewed all of the comments we received, along with the most recent statistics and economic advice including that from the Fiscal Policy Panel, the forum has unanimously agreed to recommend a minimum wage of £7.50 for next April.’
It is the largest percentage increase that the forum has recommended in nine years. Among the reasons for the 4.5 per cent increase were rising employment levels and the average earnings figure being higher than the year before, meaning that a significant rise in the minimum wage was needed to keep pace.
Recommendations to boost the separate rate for trainees have also been made. The forum suggested that a first-year trainee should earn at least £5.63 an hour, while a second-year trainee should receive a minimum rate of £6.56.
Later this month, States Members will debate a proposition from Deputy Geoff Southern calling for all employees of the States, States-owned companies and contractors to be paid a living wage by next June. The UK national living wage is expected to rise to £7.90 next year.
The living wage is a benchmark minimum level of pay which it is argued is necessary to allow workers to enjoy a reasonable standard of living.
Deputy Southern’s proposals are due to be debated on 10 October.
