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Businesses will need to match Government funding pound-for-pound under an upcoming £20 million support package that aims to help employers adapt to rising minimum wage costs over the next two years.
Economic Development Minister Kirsten Morel provided an update on the financial assistance that will be available to employers who are preparing for Jersey’s minimum wage to increase to £13 per hour in April 2025.
The change is the first step in a transition to a living wage by April 2026, when the minimum wage will be set at two-thirds of the 2024 median wage.
Pictured: The minimum wage will rise to £13 from next year.
The Minister explained that the Better Business Support Package is set to offer 50-50 matched grants aimed at boosting productivity and easing the transition to higher labour costs – with companies required to contribute the remaining half.
Deputy Morel said: “The Better Business Support Package will enable employers to invest in their people and processes.
“It is really important that business and government work together.”
Alongside helping employers manage the transition to higher minimum wages, the Minister explained that the package aims to foster long-term competitiveness in Jersey’s economy through investments in efficiency and modernisation.
He explained this is especially important as the island faces challenges from an ageing population and low productivity growth rates."
By funding half the cost of approved projects, the package aims to incentivise businesses to take meaningful steps toward modernisation to address Jersey’s historically low levels of business investment that fall below both the UK and OECD average.
“Jersey businesses have under-invested compared to the UK, which itself has the lowest business investment figures among G7 countries,” said Deputy Morel.
“This is about turning that tide and encouraging businesses to invest in themselves to become more productive and competitive.”
Whether through automation, upgraded equipment, or improved training programmes, the Government hopes to see businesses produce more with the same or fewer resources.
Pictured: Deputy Kirsten Morel is the Economic Development Minister.
The Economic Development Minister said: “This package is designed to help businesses become more productive, reducing reliance on wage labour and strengthening their ability to compete in the future.”
He also urged businesses to assess their priorities and prepare for the application process – which is set to launch in March.
“There are mounting pressures on employers and I hope they can take time into the new year to consider their business priorities, assess what improved productivity looks like for them and how their staff can become more skilled," he explained.
“I would then urge them to engage with Jersey Business to ensure everyone is ready when the application process opens."
In total, £4.3 million is earmarked for productivity and skills enhancement, including £2 million for staff training and apprenticeships.
Eligible businesses can apply for grants covering up to half the cost of approved projects, ranging from £5,000 to £75,000 for established businesses and £1,000 to £5,000 for newer operations.
Additional funding streams include apprenticeship grants of £2,000 per trainee annually – targeting sectors like construction and hospitality.
These measures, the Minister explained, aim to support workforce development while reducing businesses' reliance on labour-intensive practices.
Applications for the support grants will open in March 2025 through a portal.
To qualify, businesses must be registered in Jersey, hold a business license, employ at least one person beyond the owner for a minimum of three months, earn at least £128 per week, and be current with tax obligations or on a repayment plan.
Examples of qualifying projects include adopting automation, upgrading equipment, and implementing improved staff training programmes.
Projects must demonstrate measurable benefits to productivity, such as reduced input costs, increased process efficiency, or higher revenue.
Beyond individual grants, the support package also includes targeted support for certain sectors of the economy.
The visitor economy will receive £2 million for marketing initiatives managed by Visit Jersey, while £1 million is allocated for airline route development through Ports of Jersey.
A further £1.1 million will support rural and marine businesses, such as agriculture and fishing, which are particularly affected by wage increases.
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