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Trainee Minimum Wage.

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STATES OF JERSEY

TRAINEE MINIMUM WAGE

Lodged au Greffe on 7th February 2023 by Deputy M.B. Andrews of St Helier North Earliest date for debate: 28th February 2023

STATES GREFFE

2023  P.5

PROPOSITION

THE STATES are asked to decide whether they are of opinion

that the trainee minimum wage rates should be integrated into a single minimum wage rate for all employees of school leaving age and above, no later than 1st January 2024, pursuant to the Jersey Employment Forum's recommendations published on 8th September 2022.

DEPUTY M.B. ANDREWS OF ST. HELIER NORTH

Page - 2

P.5/2023

REPORT

The States Assembly approved the Social Security Ministers' proposal to increase the minimum wage to £10.50 in November 2022,[1] which is above the Jersey Employment Forums' (JEF) recommended baseline wage rate increase of £10.10 in accordance with the findings of the JEF report published on the 8th September 2022.[2]

In addition, the Year 1 trainee minimum wage rate was increased from £6.91 to £7.87 per hour, and the year 2 minimum wage rate increased from £8.07 to £9.19 per hour. A report published by Statistics Jersey in 2016 shows that there were under 100 persons receiving the trainee minimum wage rate.[3] It seems peculiar to maintain the trainee minimum wage rates which are £2.63 and £1.31 below the current minimum wage rate.

Therefore, I am asking the States Assembly to specifically request the amalgamation of the trainee minimum wage rates into the baseline minimum wage rate no later than January 2024 pursuant to the JEF recommendations which state:

 The trainee year 1 and year 2 rates should be abolished from 1 January 2024 and Jersey should have a single minimum wage rate for all employees of school leaving age and above.[4]

Financial and manpower implications

Legislative changes will be required if the trainee minimum wage rates are amalgamated into one single (baseline) wage. The amalgamation of the trainee minimum wage rates into the minimum wage will be an administrative task for those businesses that pay their staff the trainee minimum wage or such rates which are below the minimum wage rate.