Adults in Guernsey will be paid at least £12 an hour from October 2024.
The States of Guernsey have approved plans from the Committee for Employment and Social Security to increase both the adult and young persons minimum wage.
From 1 October 2024, people over the age of 18 will be paid at least £12 an hour, an increase of £1.35 from the current minimum wage.
Meanwhile, under-18s will receive £1.15 more, taking their hourly rate to £10.80.
Jersey's minimum wage is due to rise to £13 in April 2025.
Guernsey's Deputy Sue Aldwell says keeping the minimum rate too low would be damaging to industry.
"We have much-needed people coming to work here in hospitality or retail. Will they come here and earn £60 pound less than Jersey next year? I don't think so."
New festival part of Guernsey's Seafront Sunday
Guernsey firefighters tackle round-island walk in full kit
No provider awarded subsidy for seasonal inter-island ferry service
Guernsey's key industry 'stable' in a turbulent world
Pubs can apply to stay open later to show World Cup games
Landowners reminded to clear Guernsey's streams of vegetation
Guernsey homelessness charity 'deeply concerned' at rising support need
Plans lodged to improve Guernsey's sea water Children's Pool
