Jersey: Minimum Wage – New rates for April 2010 confirmed

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On 27 October 2009, the Employment Forum recommended an increase in the minimum wage rate and made recommendations in regard to three specific issues – tips and gratuities, benefits in kind, and a student or youth rate – which had been the subject of a consultation in June 2009.

In summary, the recommendations are as follows:

• an increase in the minimum wage by 2%, from £6.08 to £6.20, equivalent to 40% of weekly average earnings in 2009
• an increase in the minimum trainee rate from £4.56 to £4.65, i.e. 75% of the minimum wage rate
• an increase in the maximum offsets by 2%; the accommodation offset from £66.52 to £67.85 per week, and the food and accommodation offset from £88.69 to £90.46 per week (in the latter case, only where three meals per day are provided along with accommodation)
• no further extension of offsets to other benefits in kind
• a change to the legislation (as in the UK) to prevent employers using tips to top up minimum wage pay, with effect from April 2011
• the proposal to introduce a minimum student rate and a minimum youth rate should not proceed

On 2 November, Deputy Ian Gorst, the Social Security Minister, approved the recommendation concerning the new minimum wage rate, although he wished to see a further increase towards 45% of average weekly earnings when the economic climate makes that appropriate.  Nothing has been said yet about the other recommendations of the Employment Forum.

Further information:

Employment Forum recommends 2010 minimum wage rate

Minister approves minimum wage for 2010

This entry was posted on Wednesday, November 11th, 2009 at 13:43 and is filed under Jersey, Minimum Wage, National Minimum Wage, NMW. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.