JERSEY’S minimum wage could become the subject of intense political discussion after a senior minister opened the door for it to be scrapped.

Economic Development Minister Gerald Voisin took the unusual step of outlining his opposition to the minimum hourly rate – currently set £13.59 – in a letter to the editor, published in today’s newspaper.

He argued that businesses were being hamstrung by the current rate, which he said is “strangling our economy”, has “turbocharged inflation” and “denied people second jobs”.

It comes after JEP columnist and Value Jersey member Douglas Kruger advocated for scrapping the minimum wage, describing it as “an excuse for politicians to grandstand”. Deputy Voisin stood in June’s election having endorsed Value Jersey and its policies.

Value Jersey was set up in the build-up to the 2026 election as a political movement rather than a party, with candidates endorsing the group, rather than the other way round. The movement faced heavy criticism during the election cycle for operating as an unregistered lobby group while using coordinated branding, hiring a US political consultancy group and maintaining a lack of financial transparency regarding its donors.

At June’s election, six candidates who endorsed Value Jersey were successful in gaining seats in the States Assembly.

In his letter, Deputy Voisin said: “Since 2020, Jersey’s minimum wage has risen by 63%, over this same period, we’ve seen a rise in the usage of foodbanks, a sharp rise in the cost of living and a steady fall in jobs in manufacturing, construction, wholesale and retail, hotels and restaurants, transport and information and communication.

“Add to this, the 2025 States of Jersey accounts that show corporate income tax fell by 3% and GST receipts fell by 4% against 2024 and we start to see a picture that all is not healthy with our economy.”

Changes to the minimum wage fall under the remit of the Social Security Minister, currently Senator Elaine Millar. However, the Economic Development Minister would play a key role in any high-level discussions about future policy in this area.

Recent increases to the minimum wage came after the previous Council of Ministers committed to raising the rate to “two-thirds of the median wage” by the end of the previous term of office as part of its Common Strategic Policy, while also stating it would begin a “transition to a living wage for Islanders”.

Part of this policy included a £20 million support package aimed at helping employers transition to a living wage.

However, Deputy Voisin said: “We now have a minimum wage that is 29% above the hourly minimum wage in France, 79% above that of Spain and 7% above the UK. This makes Jersey businesses uncompetitive and is damaging our economy.

“As with any increase in input cost, businesses must respond to higher labour costs in one of three ways: they will reduce the amount of money spent on employment, increase prices to the consumer, or reduce profit. All of these actions have negative consequences.

“Reducing employment leaves people without jobs or reduces hours worked, it is for this reason that in some cases a higher minimum wage actually reduces peoples earnings. Increasing prices further pushes up inflation, which makes the cost-of-living problem worse for everyone and creates a wage/price spiral, which makes our economy less competitive and erodes any increase in earnings that may have been achieved.”

Jersey’s minimum wage has increased from £9.22 since 2022. Caritas Jersey – a charity licensed by the UK’s Living Wage Foundation that accredits living-wage employers – states that the living wage should be set at £15.10 per hour for 2026.

A living wage is defined as an amount that provides a worker with the ability to maintain a normal standard of living.

However, Deputy Voisin said that Jersey should take inspiration from other countries with no minimum wage levels.

“In a tight labour market such as Jersey, the likely outcome is that wages will stay at similar levels as today, but with more flexibility going forward, it will take time to heal,” he said.

“We should seek inspiration from the economies of Austria, Sweden, Denmark and Norway where good standards of living prevail, there is no minimum wage legislation and all have better performing economies than the UK and better rates of productivity.”

The current Council of Ministers is expected to unveil its new CSP shortly after the summer recess.