14 March 2019

Jersey Employment Law Update: increase in minimum wage 2019

This update covers a change in Jersey's minimum wage, which will take effect on 1 April 2019.

The Employment Forum recommended that the Jersey minimum wage rise by a significant amount in 2019 – the main "headline" hourly rate is to rise from the current £7.50 to £8.02 per hour.

Their recommendations have been adopted. The rise will occur in two steps (although as JACS have pointed out, employers could simply give employees the entirety of the raise in April 2019) – see below.

The increase

The minimum wage applies to Jersey-based employees who are above compulsory school age and will increase as follows:

  • 1 April 2019 – First increase of 5% to £7.88 per hour; and
  • 1 October 2019 – Second increase of 1.8% to £8.02 per hour.

Comment

Whilst a deferral in the full rate of increase is likely to be welcome for businesses, the two stage rise may cause challenges, particularly if there is a subsequent rise in minimum wage in April 2020; employers may find themselves having to raise wages every six months from 1 April 2019.

Trainee rates and maximum deductions for accommodation and food are also amended as follows:

  Current rates 1 April 2019 1 Oct 2019
Minimum wage (per hour)  £7.50  £7.88  £8.02
Trainee rate year 1 (per hour) £5.63 £5.91 £6.02
Trainee rate year 2 (per hour)  £6.56 £6.90  £7.02
Maximum weekly offset against minimum wage for accomodation £82.12 £86.23 £87.78
Maximum weekly offset against minimum wage for accomodation and food  £109.47 £114.91 £117.01
Maximum weekly offset trainee rate for accomodation  £61.59  £64.67 £65.84
Maximum weekly offset trainee rate for accomodation and food £82.10 £86.21 £87.76

 

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