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The Employment Forum is unanimously recommending a 4.5% increase of the minimum wage to £7.50 per hour from 1 April 2018, which would represent an extra of 32p per hour or £12.80 per week for employees working 40 hours.
The proposal has been criticised by Deputy Andrew Lewis, a member of the Jersey Living Wage Advisory Panel, who said he was disappointed the Forum did not got further, and that the transition to 45% of average earnings by 2026 was too long.
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. The Forum's recommendations, which also include trainee rates and maximum weekly offsets for accommodation, have been sent to the Minister for Social Security who will consider them before proposing any changes to the Law later this year.
Pictured: The Employment Forum's recommendations for minimum wage.
The Chief Minister announced in July that he aimed to accelerate a previously announced timetable so that the minimum wage reaches 45% of average earnings by 2020.
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."
"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," they wrote in a release.
The Forum noted more positive economic evidence this year with earnings growing faster than inflation again, unemployment continuing to fall and employment at record levels.
Pictured: Deputy Andrew Lewis wants the States to legislate to ensure "a fair day's pay for a fair day's work" for low paid workers.
But Deputy Lewis, a campaigner for a Jersey Living wage, says that the Employment Forum has not gone far enough to speed up the transition from the concept of a Minimum wage to a Living Wage. He said: “I am mindful that businesses need to be given time to adjust to higher wages for the lowest paid in Jersey, but 9 years is simply too long” said Deputy Lewis. “Unless businesses are given a target of no more than 5 years then they simply will not adjust their business models and start paying a living wage to all their workers”.
He added: “With further increases in RPI likely due to Brexit and other economic pressures, such wages simply will not provide low paid workers with sufficient funds to live on without working excessive additional hours or claiming benefits, which ultimately all tax payers are contributing to” said Deputy Lewis. “It is time that the government took a leap of faith and legislate to ensure that the cost of providing benefits is reduced and low paid workers receive a fair day's pay for a fair day's work”
The Forum’s recommendations are available on the States website.
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