Last week the Government of Jersey announced that the Social Security Minister had issued a Ministerial Order to increase the Minimum Wage to £10 from 1st October 2022. Jersey Chamber CEO, Murray Norton, responded robustly on behalf of Chamber members to the unacceptably short notice that effectively gave businesses less than two weeks to change payroll, standing order payments, and make contractual amendments for those on and above the minimum wage, who could expect changes to their salary. Businesses would also rightly need more time to assess the impacts to their margins.
Chamber had surveyed members in July, who overwhelmingly supported an increase in the minimum wage to above £10. Our strong criticism of the 1 October increase was based on the short notice and administration involved. On Thursday evening, Chamber learnt that a second increase would be introduced on 1st January 2023. The Treasury had previously indicated this would be £10.80. This would mean businesses having to make even more administrative changes three months on and reassess the impacts of these costs yet again.
On Friday afternoon, following a scheduled and hastily cancelled meeting with the Social Security Minister, Chamber seized an unscheduled five-minute meeting with the Chief Minister on Broad Street, to express our real concerns to the now proposed two changes in three months. The following solutions were suggested by Chamber:
- Reduce the ‘red tape’ of administrative costs on businesses and make one change – not two.
- Give businesses more time to manage that change by having one minimum wage increase in mid/late November of £10.50.
- Introduce the 20% rise in the offset for food and accommodation in mid/late November – at the same time as a minimum wage increase, rather than in January 2023.
- On Friday evening, Chamber was grateful to receive a communique from the Chief Minister that along with the Social Security Minister and the Economic Development Minster, they accepted the advice of the Chamber of Commerce and that they would now rescind the Ministerial Order of a £10 increase on 1st October 2022.
The Government agreed that:
- there will be no minimum wage increase to £10.00 on 1st Oct 2022, and no second change to £10.80 on 1st January 2023;
- there would instead be one minimum wage increase on 1st November 2022 to £10.50; and
- the 20% offset for food and accommodation would remain as being introduced in January 2023
Chamber CEO, Murray Norton, says “I am grateful to the Chief Minister and Ministers for listening and accepting these sensible proposals from Chamber and acting quickly to rescind the previous Ministerial Order. However, we see no reason why the 20% rise in the offset could not be lodged to go before the assembly in mid-November to mirror that of the rise in the minimum wage. The current economic pressures are shared by businesses and individuals. Greater engagement with Chamber and Government support for businesses will be required in the forthcoming Government Plan.”
Jersey Chamber of Commerce Press Release