New minimum wage plans to be proposed in Guernsey

The States said it wanted to increase the Adult Minimum Wage Rate to 66% median earnings by 2030

Islanders are being asked for their opinion on a proposed new plan for the minimum wage in Guernsey.

The States said it wanted to increase the adult minimum wage rate to 66% of median earnings by 2030.

It would equate to an increase of 1% of the median earnings each year between 2025 to 2030.

Deputy Peter Roffey, president of the Committee for Employment & Social Security, said it wanted to be aligned with Jersey and the UK.

The current minimum wage, which came into effect on 1 October 2023, is £10.65 per hour for over 18s and £9.65 per hour for 16 and 17 year olds.

The States said it had "gradually increased" since 2019 and was on course to meet its current medium-term plan of the minimum wage being 60% of median earnings by October 2024.

What happens in October is subject to a separate consultation that will be launched in May.

This consultation relates to what happens after October 2024.

Wage gap

Mr Roffey said: "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.

"However, the committee is aware that economic conditions can change quickly, and with this in mind we propose to carry out detailed reviews of the plan every two years to ensure that the policy principles are being followed, and that rates are approaching alignment with other jurisdictions as intended.

"If the feeling is that the plan is not achieving these objectives, then we will rework it and return to the Assembly for approval."

A public consultation will be held until Tuesday 2 April that will consist of questionnaires being sent to "specific targeted groups", and a public survey available online.

"We are keen to hear from as many islanders as possible on our proposals for the minimum wage - particularly from employers and those workers who are paid the minimum wage," Mr Roffey said.