[Jersey] Minimum wage will rise in October

An increase to the minimum wage in Jersey will take effect on 1 October 2019, taking the rate to £8.02 per hour for employees over the age of 16, Employee Benefits reports.

The 1 October rise will be the second increase of 2019. On 1 April 2019, the minimum wage in Jersey was increased by 5 per cent from £7.50 to £7.88.

In September Jersey’s Employment Forum - a non-political group consulting on minimum wage and other employment-related issues - under direction from the social security minister made recommendations which prompted the two-stage wage increase.

The recommendation of the forum took considered factors like economic forecasts, competitiveness and the current labour market. They also compared the minimum wage rates of the UK and self-governing dependencies the Isle of Man and Guernsey, among others.

The maximum weekly amount that may be offset against the minimum wage to account for accommodation has also increased, as a result of the changes. Going from 2018’s £82.12 maximum to £86.23 in April 2019. It will rise to £87.78 in October.

The maximum weekly offset figure for accommodation and food has increased from £109.47 to £114.91. It will go up again in October 2019, to £117.01.

The offset amounts are applicable when organisations provide accommodation, or accommodation and food, to employees as part of their package. The value of this counts towards the minimum wage, as it is covered by the employer rather than paid for by the individual. Minimum wage compliance, in this case, is worked out using the rate of pay and adding the offset amount.

Judy Martin - social security minister deputy - said, “I am really pleased that the second stage of the pay rise is set to come in next month. This is the first time since the Employment Law came into force in 2005 that the minimum wage has increased twice in one year.

“This allowed a more significant overall increase in 2019 with a longer period of notice for businesses. It is important that employers ensure that their staff are paid the correct rate from 1 October.”