JERSEY’S minimum wage will rise to £10.50 an hour from the start of November.
Social Security Minister Elaine Millar said this would replace the previously announced double rise – to £10 per hour from 1 October followed by a further increase in January.
The government said that by implementing just one increase over the next few months businesses would not need to deal with an unnecessary administrative burden so close to October’s payroll, and Islanders on the minimum wage would have more money in their pockets before Christmas.
The change comes in the wake of criticism from the Chamber of Commerce, which argued that implementing the October rise was ‘not realistic’.
The organisation’s chief executive, Murray Norton, said businesses needed time to adjust their payroll, reach new pay levels with those marginally above the minimum wage, amend employment contracts and assess the impact on their costs.
The Employment Forum had recommended that the rate should change to £10.10 an hour from 1 January but that there should be no interim increase next month.
Deputy Millar said that the government had ‘listened to the business community’ and that the new rise was a ‘better result’ for both businesses and employees on the minimum wage.
‘We have to recognise that it would have caused an administrative burden for business. It’s a very difficult balancing act – the balance we have reached is that we are not having the interim increase, which would have been unusual, and we are effectively bringing forward the January increase into November,’ she added.
Deputy Millar is now due to introduce the single minimum wage rise to £10.50 through a ministerial order, which would come into effect on 1 November and represents a 14% increase from the current rate of £9.22 an hour.
Commenting on whether she was confident businesses could accommodate the change, she said: ‘I certainly hope so because all the evidence, anecdotal and otherwise, is that a lot of people in hospitality are already paying well over £10.50.’
She added that the most recent statistics had shown there were around 900 employees on the minimum wage, mostly in agriculture and hospitality.
‘I think many people are already paying more than that [£10.50] because of the demand for staff, so we hope that people will be able to accommodate those increased rates.’
Chief Minister Kristina Moore said: ‘Many States Members have made clear to the public our support for moving towards a living wage in Jersey.
‘I committed, as part of the government’s 100-day plan, that we should hasten this progress by lifting the minimum wage to £10 per hour. We are now in the position to go further and raise it to £10.50 before Christmas. This will give hard-working families the support they need during the cost-of-living crisis.’
Subject to approval by the States, offset rates – allowances which can be deducted from an employee’s pay when accommodation or food is provided – will also rise by just over 26% from 1 January 2023.
Economic Development Minister Kirsten Morel said: ‘I understand the pressures the increase to £10.50 places on businesses and other organisations but there has been a need to balance the needs of employers with the need to get more money into people’s pockets in order to help with rising costs, and this rise is an important part of the Council of Ministers’ commitment to helping Islanders deal with rising prices.
‘I am pleased to see a substantial increase in the accommodation offset rates from January, which will help employers of seasonal workers, and I will work with businesses and our agricultural sector in particular to support them through this period.’
He added: ‘I also welcome the Employment Forum’s support for the actions I’m taking to work closely with rural businesses to look at ways in which government can support them.’
