Minimum Wage Recommendation for 1 April 2018
Monday 2 October 09:44
Employment Forum Recommends £7.50 Minimum Wage
The Employment Forum has unanimously recommended that the minimum wage should increase by 4.5 percent to £7.50 per hour from 1 April 2018.
This is an increase of 32 pence per hour, or £12.80 each week for employees working a 40 hour week. The increase would apply to all employees aged 16 and over and is the highest percentage increase that the Forum has recommended in nine years.
When reviewing the minimum wage, the Forum takes into account the views of stakeholders via consultation, the latest statistics and economic advice, and the aspiration of the States Assembly that the minimum wage should reach a figure equivalent to 45 percent of average earnings by 2026, subject to economic conditions and the impact on competitiveness and low-paying jobs in Jersey.
Helen Ruelle, Chairman of the Employment Forum said, “We are very grateful to everyone who took the time to respond to the consultation this year. Having reviewed all of the comments we received, along with the most recent statistics and economic advice including that from the Fiscal Policy Panel, the Forum has unanimously agreed to recommend a minimum wage of £7.50 for next April.”
The Forum is conscious that a 4.5 percent increase significantly exceeds the latest increases in earnings and prices. Having listened to the views of stakeholders during consultation, we appreciate that this brings a considerable additional wage cost for some businesses, particularly in agriculture and hospitality.
We found more positive economic evidence this year - earnings grew faster than inflation again, unemployment continues to fall and employment is at record levels. The mean weekly earnings figure was very high compared to last year which meant that an increase of at least 4.3 percent would be required to maintain the minimum wage at 41 percent of the mean. On top of this, the Minister asked the Forum to recommend the highest rate that it can for April 2018. This has resulted in a significant recommended increase this year. Having balanced all of the evidence, the Forum is satisfied that £7.50 is the right minimum wage for Jersey in 2018.
The Forum is also recommending the following increases from 1 April 2018 -
A Year 1 trainee rate of £5.63 per hour where training is undertaken in the first year of a new trainee role.
- A Year 2 trainee rate of £6.56 per hour where an employee has been a Year 1 trainee for one year and will continue to undertake training for up to one further year.
- An increase of 4.5 percent in the maximum amounts that an employer may offset against minimum wage pay where staff accommodation, or accommodation with three meals each day, is provided.
- The Minister for Social Security will consider the Forum’s recommendations and she will lodge a proposition to make any changes to the Law later this year.
The Forum’s recommendation is available on the States website www.gov.je/minimumwage
Copies may also be obtained from the Forum’s Secretary; E.Forum@gov.je or 447203.