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MEDIA RELEASE MINIMUM WAGE RATES
Commerce and Employment Department is recommending that the States approve proposed Minimum Wage Rates and the date on which the Minimum Wage Law should come into effect. In the Billet D'état published for debate at the States Meeting on 26th May, Commerce and Employment is recommending that the following Minimum Wage rates should come into effect on 1st October 2010;
An Adult Rate (for those aged 19 and over) £6.00 per hour
A Young Persons Rate (for those aged over 16 but under 19) £4.25 per hour
The Minister for Commerce and Employment, Deputy Carla McNulty Bauer said; "The proposed Minimum Wage Rates are set at a level which meets the objectives of the States Resolution of October 2007 that the Minimum Wage should set a base line, below which no employees or workers in Guernsey should fall. In arriving at the proposed rates, the Department considered a fair rate of pay for employees and workers in lower paid jobs and the effects on employers and their business and concluded that the proposed rates would be fair.
Asking the States to approve the rates in May, for implementation on 1st October, provides a window of opportunity for employers to reorganise their payroll arrangements, look at their costs and charges and to decide on how best to manage any implications the Minimum Wage might have on a minority of businesses, who currently pay less than the proposed minimum wage rates."
The Department is also introducing, by Regulation, a statutory amount for Accommodation, or Accommodation and Food which sets (in Law) a maximum figure which can be 'offset' against any calculation to determine whether or not an employee or worker has been paid the minimum wage. The offsets are as follows;
Where Accommodation only is provided - £60 per week or £8.57 per day
Where Accommodation and Food is provided - £85 per week or £12.14 per day
If the Regulation setting the minimum wage rates is approved, the Employment Relations Service at Commerce and Employment will be arranging a series of seminars to explain to employer and employee groups, the requirements of the Law and the compliance and enforcement provisions. This will help ensure the smooth implementation of the Law and to address any fears or concerns, particularly from employers.
Details of the Seminars will be published shortly, both in the media and on the Employment Relations Service website at www.gov.gg/employmentrelations
Posted 14th April 2010