Minimum wage disparity grows

Wednesday 21 September 2022

Guernsey's minimum wage for adults will be just under a pound less than Jersey's by the end of this year.

Currently in Guernsey the minimum wage for adults over 18 is £9.05. That is going up to £9.55 from 1 October.

This compares to Jersey's current minimum wage of £9.22, which was going to increase to £10 in October, but will instead go up to £10.50 in November.

Initially, the minimum wage was then going to increase to £10.50 in the new year, but a robust backlash from Jersey's Chamber of Commerce saw the two-step rise as an unnecessary administrative burden on businesses, and small firms in particular.

The combined rise was part of plans to "hasten progress towards a Living Wage". There have been strong calls for that to be introduced in Jersey, with campaigners saying it would be £11.27 an hour.

Caritas Jersey administers the Living Wage accreditation scheme, which highlights those firms which willingly pay above the minimum wage. Supporters of the Living Wage want it introduced in Jersey, to reflect the wider cost of living crisis in the island.

Jersey's Government had asked the Employment Forum – an independent body tasked with liaising with business groups and recommending a minimum wage in Jersey – to explore "the question of a rise in short time to the minimum wage target agreed by the previous States Assembly of two thirds of the average median wage" – roughly £10.80.

Caritas Jersey said it was "disappointed" that the Government wouldn't be working towards this target.

"In a cost-of-living crisis, this 30p per hour less is a real hit to those in poverty," Caritas said on Twitter yesterday.

"We call on @GovJersey after this climbdown to assist those in poverty, [especially] those without five years' residency, by supporting mini-budget amendments to extend the Social Security 2% cut to 31 March. Otherwise, it's a pay cut for many at most expensive time of year. Please do the right thing!"

Among the industries which often pay minimum wage is hospitality. One of Jersey's brands has supported efforts to bring in a 'living wage', as opposed to a 'minimum wage'.

JP Restaurants CEO Dominic Jones said: "Yet again @GovJersey fails to implement a minimum wage in accordance with their stated aspirations and despite support of Reform Jersey.

"At some stage we are going to have to 'walk the talk' as we get left behind our EU neighbours' legal minimum wage of 60% of the median wage."

Calls for a living wage to be introduced in Guernsey have not been as vociferous as in Jersey.

The minimum wage act was first introduced in 2010 with the rate set at £6 an hour for over 18s.

Now it is up to £9.55, which would give a pre-tax wage of less than £20,000 for someone working full-time on minimum wage.

Pictured: The new minimum wage rates will come into force in October.

A number of other financial measures to help the lowest paid people in the island have also recently been approved.

The Emergency Uprating of Income Support Rates was passed by the States on 8 September. It means that from 7 October the limit of weekly income for a person receiving income support, including all earnings and benefits will be £980 per week, up from the current £930.

Rent allowances and winter fuel supplements have also been increased.