Jersey: Minimum Wage – New rates for April 2010 confirmedWednesday, November 11th, 2009
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.
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