The Jersey Government has announced that minimum wage is to rise to £10.50 per hour from 1st November 2022.
This replaces and enhances the previously planned incremental rise to £10 per hour from 1st October 2022 in advance of a further January 2023 increase, neither of which will now take place. Only enacting one rise in Jersey’s minimum wage over the next few months means businesses will not need to deal with an unnecessary administrative burden so close to October’s payroll and Islanders on the minimum wage will have more money in their pockets before Christmas.
A single minimum wage rise to £10.50 from 1st November 2022 represents a 14% increase compared to current levels. Trainee rates will rise by the same percentage.
Subject to States approval, offset rates (allowances which can be deducted from an employee’s pay when accommodation and/or food is provided) will rise by just over 26% from 1 January 2023 to bring them back in line with previous practice.
The Chief Minister, Deputy 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.”
The Social Security Minister, Deputy Elaine Millar, will make a Ministerial Order to increase the minimum wage to £10.50 an hour from 1st November 2022 having reviewed the Jersey Employment Forum’s report and recommendations. She will also lodge Regulations to increase offset rates from January 2023.
The Minister had noted the Forum’s recommendation that the minimum wage be increased to £10.10 an hour from 1st January 2023 and offsets increased by 20 per cent at the same time.
Deputy Millar said: “I’m very grateful to the Employment Forum for preparing a comprehensive report and I’ve considered carefully what they had to say, especially about the results of their consultations with businesses, trade unions and the wider Jersey community.
“The percentage of workers at or close to minimum wage rates has fallen steadily in recent years, but it is important to continue to increase minimum wage rates as quickly as we can. The increase to £10.50 in November helps Islanders most affected by the cost of living more quickly than a staggered uplift and also reduces the admin burden on businesses.”
The Minister for Economic Development, Tourism, Sport and Culture, Deputy 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.
“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.”