Views Sought On Phased Increase To Minimum Wage

A poll on gov.gg opens today, asking for views on narrowing the gap between Guernsey's lowest wage earners and those taking home the median wage.

The States introduced a legal commitment for employers to pay a minimum wage back in 2010, when it was £6 an hour for the over 18s. It's now £10.65.

The aim of a minimum wage is to provide a financial cushion to those in poorer paid jobs, in an island where many are paid relatively highly because of the influence of the finance sector.

The States are currently committed to gradually increasing the minimum wage until it's 60% of the median wage and it will reach that, in October 2024. That annual figure sits at just over £40,000.

But a new proposal, covering the period between 2025 and 2030, would see the minimum wage climb to 66% of the median wage - or around £13 an hour in five year's time.

Deputy Peter Roffey heads up ESS, the committee responsible:

“The new medium-term plan will continue the existing plan’s objective to ensure that the gap between the Island's lowest paid workers and the workforce average does not grow too wide.

It is also important that Guernsey broadly aligns with Minimum Wage Rates in Jersey and the UK, both of which consider the 66% figure an appropriate target.”

But ESS is sensitive to the fact that economic conditions can change quickly - just look at the effect the war in Ukraine and Covid have had on inflation and the global economy - so it will review the 66% target every two years.

The committee will be sending out questionnaires to specific groups and a poll is opening today on gov.gg for everyone to have their say.