Minimum wage going up

Wednesday 01 April 2015

The minimum wage is going to £6.78 from today.

The rise of 2.2% takes effect from today in the minimum hourly rate, which is slightly higher than the rates in Guernsey and the UK.

Every year, the Employment Forum that is made up of representatives from employers and employees reviews the rates, and makes recommendations for increases.

They take into account the rise in wages generally, the rise in the cost of living measured by inflation and what is going on in the economy generally.

Last time around, they were also asked to take into account a report by the States’ Statistics Unit on the differences between prices in the UK and Jersey – that report found that goods were on average 9% more expensive than the UK average, and which showed that costs in Jersey were even higher than in London.

In 2010, the States agreed a proposition that set a target for the minimum wage to hit 45% of average earnings by 2026 – that would mean a minimum wage of more than £7.50.