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Jersey’s minimum wage is set to increase to £13 per hour next year in the first step towards transitioning to a living wage by 2026.
The Government has today also announced that £20 million of support will be put in place to help employers and employees adapt over the next two years.
From April 2025, employees will have to be paid a minimum of £13 per hour.
From April 2026, the minimum wage will be set at two-thirds of the 2024 median wage.
Pictured: Social Security Minister Lyndsay Feltham said that transitioning to a living wage is "an important priority".
Social Security Minister Lyndsay Feltham said the Government saw transitioning to a living wage as "an important priority", as it supports "many in our community who are most likely to be struggling with the cost of living".
"We are staging the transition over two years, and providing some temporary support measures to employees during that time," she explained.
Economic Development Minister Kirsten Morel added: "The Council of Ministers has committed to transitioning to a living wage.
"To support employers through this transition we’ve designed a package to help organisations invest in themselves and help the Island move to a more productive and resilient economy.
"Finer details of the package will be announced in the coming weeks, and they will come into effect before the new minimum wage is introduced on 1 April 2025."
From April 2025, employees will have to be paid a minimum of £13 per hour – a figure that is up from £11.64 in 2024.
From April 2026, the minimum wage will be set at two-thirds of the 2024 median wage.
There is no published median hourly wage for 2024, but according to the most recent Average Earnings Index, the weekly median wage for 2024 is around £850 per week.
According to the Average Earnings Index 2024, the median wage for full-time employees was about £850 per week.
Express has asked the Government for the minimum wage figure for 2026.
The Government today also unveiled a £20 million support package aimed at helping employers transition to the living wage over the next two years.
A broad overview has been released, but more details will be revealed later.
According to the Government, the package is set to include:
£6 million towards the Productivity Support Scheme, which aims to encourage local firms to become more innovative, efficient and productive
£7 million to go towards tourism and hospitality
£3 million to support training investment
More than £2 million to go to the rural and marine economy
Further support packages are being considered.
Pictured: Economic Development Minister Kirsten Morel said the money would “help organisations invest in themselves and help the island move to a more productive and resilient economy”.
Caritas Jersey have been campaigning for years for living wage to be made minimum wage in Jersey.
The charity is accredited by the UK Living Wage Foundation to set the living wage figure in the island.
The States Assembly agreed in 2021 to set an "objective" to raise the minimum wage to two-thirds of median earnings by the end of 2024, subject to "economic conditions".
The previous Government report, commissioned by then-Social Security Minister Elaine Millar, concluded that “a statutory link to a specific formula or target could be counter-productive”, arguing that it would be “difficult to justify” the statutory rate, “which could not be adjusted when circumstances require it”.
But in January, following the vote of no confidence, new Chief Minister Lyndon Farnham made a commitment to the living wage, adding that he was "realistic" about the work.
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