Minister approves 2013 Minimum Wage increase

| December 4, 2012 | 0 Comments

The Minister for Social Security has approved the Employment Forum’s recommendation that the minimum wage should increase by 5 pence per hour from 1 April 2013.

Senator Francis Le Gresley, said “I believe that the minimum wage must increase next year and, having carefully considered the Forum’s extensive review, I think that £6.53 per hour is the right figure for Jersey in the current economic climate. The increase of 0.75 percent also moves us towards the States agreed target that the minimum wage should represent 45 percent of mean weekly earnings by 2025.

I hope that we can achieve more significant minimum wage increases in the future, as the economy shows signs of recovery, to incentivise local unemployed people to take up lower paid jobs.

I would like to thank the nine members of the Forum, who give their time on an honorary basis, for undertaking the challenging task of reviewing the minimum wage this year.

The Minister also approved the Forum’s recommendation for a new ‘Year 2’ trainee rate at £5.71 per hour (equivalent to 87.5 percent of the minimum wage). This rate would be paid to an employee who has undertaken training for one full year and will continue to undertake training for up to one further year.

Senator Le Gresley said “I hope that the option of a longer trainee rate period will encourage employers to increase the availability of good quality training opportunities and trainee positions, and that these positions would attract local unemployed people.”

The existing trainee rate, which may be paid to an employee who is undertaking training in the first year of a new trainee role, would increase to £4.90 per hour (75 percent of the minimum wage).

Amended legislation will be presented to the States later this year and the ‘Trainee Rate Code of Practice’ will be revised to clearly and simply explain the criteria that must be met to pay the trainee rates.

The Forum’s recommendation is available on the States website

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Category: Employment, Finance & Business

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