The Committee for Employment & Social Security would like to hear people's views on changes to the Minimum Wage & Associated Rates.
Before changing the Minimum Wage, The Minimum Wage (Guernsey) Law 2009 requires the Committee to consult with organisations, or associations of organisations, representative of employers and employees in Guernsey, and such other organisations and bodies, as appear to be appropriate.
The States have directed the Committee "when they bring proposals to the States for the adult and young persons' minimum wage levels for 2019 to provide clarity on their medium term plan for increasing minimum wage levels" (Billet d'Etat XXIII of 2017, Article 9). When considering this States direction, the Committee is taking the medium term to be the next 5 years. A further option under consideration is for the minimum wage rate to automatically increase by inflation (RPIX). If this approach were adopted, the 2019 minimum wage rate would be £7.94 (a 19p increase) as a result of the 2.4% inflation from June this year.
This consultation closed on 10th September 2018.
Proposed Minimum Wage Rates 2019
- The Committee for Employment & Social Security has proposed new statutory minimum wages rates, which will be debated at the States meeting on 28 November 2018.
- The Committee's proposals have taken into account the results of the public consultation in accordance with the requirement under section 5 of the Minimum Wage (Guernsey) Law 2009. A copy of the policy letter which highlights the results of the consultation can be found in the downloads section of this page.
- The statutory minimum wages rates, if approved, will take effect from 1 January 2019. The Adult Rate, for those aged 18 and over, will be £8.10 per hour, an increase of 35 pence per hour from £7.75. The Young Person's Rate, which applies to 16 and 17 year olds, will increase from £7.05 to £7.50 per hour.
- It is also the Committee's intention to increase the offset for accommodation and food from 1 January 2019. 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 £75 per week to £78, and where both accommodation and food are provided, this will increase from £105 per week to £109 from 1 January 2019.
- The Committee also intends to introduce a medium-term plan for minimum wage rates with the aim of providing both business owners and employees with a direction for business planning over the next five years. It is the Committee's intention to link minimum wage rates to 60% of median earnings, ensuring that the gap between the Island's lowest paid workers and the workforce average can never grow too wide. Incremental increases towards this benchmark will be implemented over the next five years, starting with £8.10 in 2019. The Committee also intends to take steps towards equalising the adult rate and young person's rate by 2023.
Should you require any further information, please contact us by emailing the Employment Relations Service on firstname.lastname@example.org or call (01481) 234567.
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Closed: 10th September 2018