Jersey's Employment Forum has recommended that the minimum wage should increase to £6.53 per hour from 1 April 2013.
This would provide a pay rise of around £2 per week for employees working a 40 hour week.
The Forum reviewed the minimum wage by consulting employers, employees and other interested parties, and considering the latest statistics and economic advice.
The modest increase - 0.75% - takes into account the continuing economic difficulties local businesses are facing and balances the views of employers and employees, the impact of any increase on jobs and competitiveness in Jersey, and the States of Jersey's objective that the minimum wage should be increased proportionately to average weekly earnings over the next 13 years.
The Forum is also recommending, from 1 April 2013:
- An increase of 0.75 percent in the maximum amounts that an employer may offset against minimum wage pay where staff accommodation, or accommodation with three meals each day is provided
- A Year 1 trainee rate equivalent to 75 percent of the minimum wage (£4.90 per hour) where training is undertaken in the first year of a new trainee role
- A new 'Year 2' trainee rate equivalent to 87.5 percent of the minimum wage (£5.71 per hour) where a trainee has received the trainee rate whilst undertaking training for one full year and will continue to undertake training for up to one further year
- The trainee rate code of practice should be revised to explain more clearly and simply the criteria that must be met to pay the trainee rates to encourage employers to consider employing trainees and potentially create new trainee positions
The Minister for Social Security, Senator Francis Le Gresley, will consider the Forum's recommendations and any changes to the Law will be lodged with the States later this year.
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