Q&A: Could pay rises be in the pipeline for States Members?

Wednesday 13 September 2023

Should Jersey's politicians receive a pay rise? Do they deserve one?

These are some of the questions that Jennifer Long, Jersey's first independent 'Remuneration Reviewer', is asking islanders as part of a consultation on proposed changes to politicians' wages which would aim to bring them in line with average earnings.

What does the 'Remuneration Reviewer' do?

In April 2022, the States Assembly agreed a new system for setting States Members' pay through the implementation of the States of Jersey (Remuneration of Elected Members) Law 2022.

The new system replaces the previous arrangements for setting Members' pay, including the States Members' Remuneration Review Body.

An independent reviewer should now be appointed in the year after each election.

The reviewer must consult the Minister for Treasury and Resources and other States Members as part of their work, but the reviewer's determination is final and cannot be changed by States Members.

The reviewer's report must specify Members' remuneration and the date when any change takes effect, explaining the rationale for both.

What is she proposing?

Her key conclusion is that the salaries of States Members should be calculated against a benchmark, called the Average Earnings Index, which shows how the earnings of employees in Jersey have changed over the previous year.

Benchmarking against average earnings

In June 2023, the all-sector average earnings were 7.7% higher than in June 2022, the highest increase since 2001.

This is the first time the pay of States Members will be decided entirely independently, after the Assembly agreed a new system for the process last year.

The report reads: "Because it is designed to measure changes, and it adjusts data for those who work part time, it is particularly well suited for use as a benchmark to update salaries."

Cost-of-living rises ruled out

Ms Long said she "considered but quickly ruled out a link to a measure of inflation".

"There's no reason why States Members should be protected against inflation any more or any less than anyone else. Most of us don't have that protection," she added.

In her report, she also makes the "strong case" for "making an adjustment to States Members' salaries to bring them back into line" with what the States Members Remuneration Review Board had intended them to be in June 2022.

Other proposals include an increase from 10% to 16% in their employer pension contributions, in line with the contribution paid to other public servants, and potential changes to non-election payments.

"A potential downside of the current arrangement is that because the payment is made only to those who stand again, some individuals may stand for election solely to benefit from the payment and without any desire to serve another term," the report reads. "This is clearly not desirable for constituents, and may also involve some inconvenience and personal stress for the individuals concerned."

Transparency push

Ms Long said: "Given the impact States Members have on the lives of everyone in Jersey, it's important they are paid fairly for the work they do while also being fair to taxpayers and constituents.

"These proposals would bring States Members' pay and pensions more in line with other employees and public servants in Jersey and provide a transparent and objective basis for future update."

She proposes to make any changes to States Members' salaries, in line with the change indicated by the 2023 AEI, with effect from 1 October 2023.

How much do States members earn now?

The current Assembly of States Members are each paid £50,000 per annum.

Their pay increased from £48,000 on 1 June 2022.

States Members do not receive any additional 'allowances'. The only claimable expenses relate to travel outside Jersey on States business. They cannot claim any reimbursement for most of the costs they incur in carrying out their role, such as fuel or transport, printing, stationery, administrative support, or buying coffee for a constituent.

The only additional benefit that States Members receive is the contribution to their pension. They do not receive bonuses, private healthcare or other benefits as might be the case in many parts of the private sector, such as financial services.

How do I have my say?

Islanders will be able to give feedback on the Remuneration Reviewer's proposals by 3 October, through an online survey, before she makes her final decision.

The survey can be accessed HERE.