A DECISION to prevent multiple rises in the minimum wage over the next few months – in favour of a single increase to £10.50 in November – has been welcomed by the Chamber of Commerce.
The organisation’s chief executive, Murray Norton, spoke after Social Security Minister Elaine Millar revealed that the previously announced double rise – to £10 per hour from 1 October followed by a further jump in January – was being replaced by a lone increase in November.
The government has said the move will prevent an ‘unnecessary’ administrative burden for employers so close to October’s payroll, while also helping Islanders on the minimum wage to have more money in their pockets before Christmas.
The change was made in the wake of criticism from the Chamber, which said the October rise would not have provided a ‘realistic’ timeframe for businesses to adjust costs and amend employment contracts.
Deputy Millar said the government had ‘listened to the business community’ and admitted that having the interim increase in October would have been ‘unusual’.
A single minimum wage rise to £10.50 is now due to be implemented through a ministerial order, which would come into effect on 1 November.
Additionally, 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 subject to approval by the States.
Mr Norton said the Chamber was ‘grateful’ that the government had listened to its advice and ‘acted quickly’ to rescind the previous ministerial order.
‘However, we see no reason why the [26%] rise in the offset could not be lodged to go before the Assembly in mid-November to mirror that of the rise in the minimum wage.
‘The current economic pressures are shared by businesses and individuals.
‘This is a long overdue rise [in the offset] that is much-needed for businesses such as those in the hospitality sector which provide food and accommodation,’ he added.
He also said that greater government support for businesses and engagement with the Chamber of Commerce ‘will be required in the forthcoming Government Plan’.
