A POLITICIAN is calling for the minimum wage to be raised to match the living wage before the current government leaves office.
Deputy Max Andrews said in the report accompanying his proposition that workers would gain financial independence if they received the living wage, an amount which rises in line with the latest inflation figures to acknowledge the increased cost of living.
He further explained that the alignment would reduce the need for government support to top up low wages and stop enabling unsustainable business models to continue operating.
The minimum wage is currently £11.64, which has increased from £9.22 since 2022.
This is £1.77 an hour less than the £13.41 living wage for 2024, which is set by Caritas Jersey – a charity licensed by the UK’s Living Wage Foundation to accredit employers with the living wage, aiming to ensure that workers earn enough to be able to live with dignity and thrive.
Firms can voluntarily sign up to become living-wage employers.
The new rate rose from £12.19 in 2023, representing an increase of just under 10.1% in line with the latest rate of inflation.
The States Assembly agreed in 2021 to set an “objective” to raise the minimum wage to two-thirds of median earnings by the end of 2024, subject to “economic conditions”.
A review published last December said this commitment should be “maintained” – but not written into law, noting that it is “likely to be difficult” to reach the two-thirds target by the end of 2024.
In January, Chief Minister Lyndon Farnham made a commitment to the living wage, which Deputy Andrews said demonstrated “a desire to raise the minimum wage to the Caritas living wage”.
Deputy Farnham added that he was “realistic” about understanding the “financial pressure” that a rise would put on small businesses who might not be able to afford it, including sectors such as agriculture, tourism, hospitality and retail.
Deputy Andrews is hoping to speed up the Council of Ministers’ plans and force the government to enshrine that alignment in law before the end of their term.
If his proposition, which is due to be debated on 30 April at the earliest, passes, then the Social Security Minister would have to update the Employment (Jersey) Law 2003 to include this.
He said: “I believe it is essential that the minimum wage is increased to match the living wage to support workers’ financial independence before the end of this term of office.
“It was one of my mandated policies to introduce a living wage and the lodging of this proposition seeks to do just that.”
He acknowledged the government’s “proactive steps to assist baseline wage workers” to date, adding: “Much more work ought to be done though as the minimum wage cannot be maintained.”
He argued that it was “imprudent” to maintain it, saying: “Jersey’s low wage economy sectors are indirectly subsidised with employees receiving state support via transfer payments and rental subsidisation”.
Caritas Jersey’s chief executive, Patrick Lynch, hit out at the government in December after they failed to consult the charity during their investigation into whether the living wage should be statutory in the Island.
The government report concluded it was “neither feasible nor desirable” to introduce a statutory living wage rate in Jersey, and that “a statutory link to a specific formula or target could be counterproductive”.
Mr Lynch said there was “real concern” about levels of poverty in the Island and the increasing use of foodbanks.
