Minimum wage set to rise

Monday 19 August 2019

The adult minimum wage could rise to £8.50 per hour from next year, if deputies agree to new proposals.

At the moment, local employers have to pay staff over the age of 18 at least £8.10 per hour, but Employment & Social Security would like to see that rise by 40p.

If the proposals are passed, the young person's rate, which applies to 16 and 17-year-olds, will also rise from £7.50 to £8.05 per hour. This is a step towards the committee's aim of equalising the adult and young person's rate by 2023.

As part of its plans, ESS intends to increase the offsets for accommodation and food from next year as well. This would set the maximum amount that an employer can deduct from a staff member's wages for their housing and meals.

Pictured: ESS President Deputy Michelle Le Clerc. 

The changes will see the offset for accommodation and food rise from £109 per week to £114, while the fee for just accommodation will increase from £78 to £82.

It's all part of a medium-term plan for minimum wage rates, which was approved by the States last year. After hearing recommendations from ESS, the Assembly agreed to link the rates with 60% of median earnings over five years.

"Following States approval of the medium-term plan, we propose the next step for 2020," explained President of ESS Deputy Michelle Le Clerc. "The minimum wage rates which we recommended for 2020 will keep us on track for the minimum wage to equal 60% of median earnings by 2023.

"We see this as a positive step, assisting with the reduction of in-work poverty and ensuring that workers in low earning sectors are not exploited."

The proposals are due to be debated at next month's States meeting and, if approved, will come into effect from 1 January 2020.

More information and advice on minimum wage legislation is available here.