The Social Security Minister (the Minister) has announced her intention to increase the minimum wage from £8.32 to £9.22 as of 1 January 2022.
The Employment (Jersey) Law 2003 currently requires the Minister to direct the Employment Forum to consult affected stakeholders before the minimum wage can be increased.
The Minister has lodged draft Regulations under the Covid-19 (Enabling Provisions) (Jersey) Law 2020 which, if approved by the States Assembly, would temporarily remove that requirement until 1 April 2022, allowing the Minister to set minimum wage rates without directing the Employment Forum to consult.
The Minister's intention is to achieve a target agreed by the States Assembly that the minimum wage should reach 45% of mean average earnings. The proposed 90 pence increase reflects the recently released mean average weekly earnings figure of £820.
The Minister has cited the reasons for her proposition as a combination of Covid-19 restrictions and changes following Brexit which has led to reports of staff shortages in low-paid sectors and a decision by businesses in some sectors to significantly increase the wages that they are offering.
The Minister will ask for the debate to take place at the 5 October States sitting. We will follow progress in this matter and update you as the debate continues.
Read the proposed regulation here: Draft Covid-19 (Employment – Minimum Wage) (Jersey) Regulations 202- (gov.je)
If you have any questions please contact one of our team who will be happy to assist.