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Increase the minimum wage

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15

WQ.242/2018

WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY BY DEPUTY C.S. ALVES OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 6th NOVEMBER 2018

Question

Following the presentation of Minimum Wage Rates for 2019: Employment Forum's recommendation and Minister's response' (R.131/2018), what further measures, if any, is the Minister putting in place to increase the minimum wage to 45% of the average wage?

Answer

In accordance with the Employment (Jersey) Law 2003, before setting a minimum wage rate each year, the Minister must refer the matter to the Employment Forum for consultation and the Forum must make a recommendation to the Minister. The Minister will initiate the next minimum wage review early next year and, following consultation in 2019, the Forum will recommend a minimum wage for 2020.

As part of their review in 2019, the Forum will take into account the States aspiration for the minimum wage to reach 45% of average earnings subject to consideration of the economic conditions and the impact on competitiveness and employment of the low paid in Jersey.

The States Assembly agreed in early 2018 (P.121/2017, as amended) that the minimum wage should reach a figure equivalent to 45% of average earnings by 2020 subject to consideration of the economic conditions and the impact on competitiveness and employment of the low paid in Jersey.

The Minister has made an Order that will increase the minimum wage rate, as recommended by the Employment Forum, to reach 43.4% of mean weekly earnings on 1 October 2019.