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New minimum wage rates proposed

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The Committee for Employment & Social Security has proposed new statutory minimum wages rates, which will be debated at the States meeting on 29th November 2017.

The statutory minimum wages rates, if approved, will take effect from 1st January 2018. The Adult Rate, for those aged 18 and over, will be £7.75 per hour, an increase of 55 pence per hour from £7.20. The Young Person's Rate, which applies to 16 and 17 year olds, will increase from £6.50 to £7.05 per hour.

It is also the Committee's intention to increase the offset for accommodation and food from 1st January 2018. This allows for a specified amount to count towards minimum wage pay and calculations. The offset where accommodation is provided by an employer will rise from £66 per week to £75, and where both accommodation and food are provided, this will increase from £95 per week to £105 from 1st January 2018.

Deputy Michelle Le Clerc, President of the Committee for Employment & Social Security, said:

'When we consulted earlier this year on the proposed new level of minimum wage, the number of people who responded was high compared to previous years. While the Committee at that point was consulting on a suggested minimum wage for adults of £7.50, more than 71% of the 179 people who responded wanted it increased to £8 per hour.

'Having carefully considered the matter further, the Committee has taken the view that an increase to £7.75 is appropriate at this current time and takes into account the needs of the employee and the employer.

'The Committee is also conscious that external factors such as Brexit and the weakening of the pound have had an impact on recruitment in certain industries. It is hoped that the new proposed minimum wage will help Guernsey remain a competitive and attractive destination in which to work.'

The Employment Relations Service advises employers to make any required changes to their payroll systems to ensure compliance with the new rates.

For further advice on the Minimum Wage legislation visit www.gov.gg/employmentrelations, contact the Employment Relations Service on 234567, or email employmentrelations@gov.gg.

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