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Minimum wage increases today

Minimum wage increases today

Wednesday 01 January 2020

Minimum wage increases today

Adults on the minimum wage will see their pre-tax pay go up by 40p an hour, starting from today.

The minimum wage rate for 16 and 17 year olds will also go up by 55p.

Following the changes, which were approved by the States last year, the new rates stand at £8.50 and £8.05 per hour respectively.

The maximum offset an employer can deduct from that for providing food and accommodation is £114 per week, while the maximum offset for accommodation only is £82 per week.

The States' Employment Guide sets out some advice for employees and employers on minimum wage calculations. 

"An employer is breaking the law if they are not paying at least the minimum wage to their workers," it says, "It does not matter how workers are paid, what their contracts or written record of the terms of their employment2= say or what agreements have been made with employers.


Pictured: Employment & Social Security recommended increasing the minimum wage by the above rates, with those proposals then given the green light by the States of Deliberation. 

"The calculations to check if the minimum wage is being paid are based on the gross basic pay received by a worker and the number of hours worked. There are few benefits in kind that can be treated as remuneration in these calculations (essentially accommodation or accommodation and food).

"To check if workers are being paid at least the minimum wage rate, employers and workers need to know the pay reference period that applies and what elements of pay count towards the minimum wage.

"If a worker believes they are being underpaid (that is below the minimum wage) they can see their employer’s minimum wage records, or ask the “Enforcement Officer” to investigate for them. Employers and workers can contact the Employment Relations Service for free, confidential advice." 

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