Forum recommends Minimum Wage increase

| October 29, 2012 | 0 Comments

The Employment Forum is recommending that the minimum wage should increase to £6.53 per hour from 1 April next year.

This would provide a pay rise of around £2 per week for employees working a 40 hour week.

The Forum reviewed the minimum wage by consulting employers, employees and other interested parties, and considering the latest statistics and economic advice.

Helen Ruelle, Chairman of the Employment Forum explained, “We achieved an excellent response rate this year, but the continuing uncertainty in the economy made it particularly difficult for us to reach a unanimous decision. We all agreed, however, that any increase for April 2013 must be modest and the decision to
recommend that the minimum wage should increase by 0.75 percent was unanimous.

We have to balance a number of factors; the views of employers and employees, the impact of any increase on jobs and competitiveness in Jersey, as well as taking into account the States’ objective that the minimum wage should be increased proportionately to average weekly earnings over the next 13 years. We believe that this is the maximum increase that employers will be able to bear next year.”

The Forum is also recommending, from 1 April 2013 -

  • An increase of 0.75 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.
  • A Year 1 trainee rate equivalent to 75 percent of the minimum wage (£4.90 per hour) where training is undertaken in the first year of a new trainee role.
  • A new ‘Year 2’ trainee rate equivalent to 87.5 percent of the minimum wage (£5.71 per hour) where a trainee has received the trainee rate whilst undertaking training for one full year and will continue to undertake training for up to one further year.
  • The trainee rate code of practice should be revised to explain more clearly and simply the criteria that must be met to pay the trainee rates to encourage employers to consider employing trainees and potentially create new trainee positions.

The Minister for Social Security, Senator Francis Le Gresley, will consider the Forum’s recommendations and any changes to the Law will be lodged with the States 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.

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Category: Employment, Events, Finance & Business

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