Guernsey’s minimum wage for adults will go up to £12.60 per hour from October, with the minimum wage for 16 and 17 year olds going up to £11.35.
Deputies yesterday agreed the new rates, after an attempt to lower the ‘young peoples’ minimum wage was defeated.
The new rates will come into effect on 1 October 2025.
The States have also approved associated increases to the ‘Accommodation and Meals Offset’, (up to £158 per week), and the ‘Accommodation Only Offset’, (up to £113 per week) for those staff who receive accommodation and meals as part of their employment package.
The changes were proposed by the Committee for Employment & Social Security, who said they considered in factors like minimum wage rates in other jurisdictions, (The UK, Isle of Man, and Jersey), Guernsey’s current economic situation, inflation, unemployment, and pay levels.
They said they also consulted with a variety organisations to balance the needs of both employees and employers.
The new rates were passed, but not before heading through the gauntlet challenge that is the States of Deliberation.
Amendments
States members debated a number of suggested tweaks to the proposed minimum wage changes.
One which was passed saw the States agree to “give due consideration” to aligning future minimum wage increases with Guernsey’s tax year. This could come in by January 2026 meaning future increases (or decreases) to the minimum wage would come into effect on 1 January each year rather than in October.
Efforts to change the rate for the minimum wage for young people, coming in to force this October, were defeated though, when challenged yesterday.
Deputy Sasha Kazantseva-Miller and Deputy Simon Vermeulen suggested that the minimum amount that 16 and 17 year olds can be paid should be kept at 80% of the adult minimum wage.
Currently young people are paid 90% of the adult minimum wage and Deputies Kazantseva-Miller and Vermeulen said it should be pinned at that level until the adult rate has increased another 10%.
The goal was to reduce the young person’s minimum wage, relative to the adult rate, in an attempt to incentivise youth employment, making them a more promising prospect for businesses and employers.
However, those against the amendment felt that it failed to take into consideration young workers who may be entirely self reliant and dependent on what little they already get.
Ultimately the States decided against the move, keeping the young persons’ minimum wage 10% below the adult rate.